Export of Services

[Harsh Jindal]

What are the condition for Export of Services?

[YAGAY andSUN]

Export of services shall now be governed by new provisions in the service tax rule 1994.

namely rule 6A. The essential requisites before a service can be designated as export service

are:

•It must be a service as defined under sub-section 44 of section 65B

•by a service provider located in the taxable territory

•to a service receiver located outside India

•the service is not a service specified in the negative list

•the place of provision of the service is outside India

•the payment for such service is received by the service provider in convertible foreign

exchange

•the service provider and service receiver are not merely establishments of a distinct person by virtue of item (b) of Explanation 2 of clause 44 of section 65B of the Act

The answer to all questions above must be yes to avail the status of export of service.

AI Summary

Export of services requires territorial, recipient, place of provision, negative list and foreign exchange payment conditions to be met. Export of services requires that the supply qualify as a service, be provided by a supplier in the taxable territory to a recipient outside India, not be on the negative list, have the place of provision outside India, be paid in convertible foreign exchange, and not involve supplier and recipient as mere establishments of the same distinct person.