Security services being provided partly in India and partly abroad

[MAHINDER KAMBOJ]

Sir, one security service provider in India providing security services partly in India and partly abroad to Gates Foundation, USA. Whether these services qualify as export, payment is also received in USD. Is the service provider liable to service tax as the Gates Foundation is not doing any business in India they are doing only charity work for philanthropic purposes.

[Rama Krishana]

I doubt the nature of service as partly performed in India and partly performed outside India. Yes, I may agree that there may be single contract for providing security services to Indian branch / offices as well as outside India. Therefore, the service which is provided in USA shall be entitled for export benefit. Therefore, if you claim that it is one service which is partly performed in India and partly performed outside India, please specifies the detailed nature of activity and how the services is being rendered for more clear view of the issue.

AI Summary

Export of services: cross-border portion of security services may qualify for export benefit when performed outside India. Whether security services under a single contract performed partly in India and partly abroad qualify as export of services depends on whether the portion is actually performed outside India and meets export conditions; foreign currency payment and recipient's charitable status are not alone determinative, and a detailed factual allocation of activities, locations and modes of performance is required to decide service tax liability.