Service Tax Liability

[Harsh Jindal]

If service is provided outside india (ie, non - taxable territory) but both service provider and receiver are in taxable territory, wheather Service Tax will be leviable? If yes, why?

[YAGAY andSUN]

According to Rule 8 of POPS, Where the service receiver and service provider are located in the taxable territory, the provision of service would be the location of service receiver irrespective of where the service is performed, delivered or consumed.  Therefore, service tax will be leviable in this matter.

AI Summary

Location of service receiver determines taxability, so service tax applies when both parties are in taxable territory. When both service provider and recipient are located in the taxable territory, the provision is situated at the location of the service receiver and service tax is leviable, regardless of where the service is performed, delivered or consumed.