service tax on export of service

[RAMAYYAH DHARMASANKARAN]

A private limited company, providing IT enabled services ( E book conversion job) to overseas customers , has taken registration as Information Technology Services instead as Business support service . The converted e books were delivered through internet to the overseas customers. The Indian company does not have any publishing rights over the material given for conversion. Whether this service can be considered as ' Online Data base access and retrieval services ' ?

AI Summary

IT Company Challenges Service Tax Classification Under Rule 9, Claims Export Status Under Rule 3 to Avoid Tax A private limited company in India, providing IT-enabled services such as e-book conversion to overseas clients, registered under Information Technology Services, is disputing a service tax demand. The tax authority classified their service as Online Database Access and Retrieval Services (OIDARS) under Rule 9 of the Place of Provision (POP) Rules, 2012, leading to a tax demand. The company argues that their service should fall under Rule 3, as it constitutes an export of service, not liable for service tax. The discussion highlights the need for examining the Order-in-Original and relevant circulars to determine the correct classification.