Service tax applicability on foreign exhibitors

[mahesh nandwani]

We organise exhibitions in India. Whether foreign exhibitors are also supposed to be charged service tax. Pl Advice. thanks mahesh kr

The service rendered by you would fall under Business exhibition service (Sec.65(105)(zzo). Under the Export of Service Rules, 2005, the service fall under category 3(ii) and thus considered as export only if the service (atleast partly) is rendered outside the country. Thus, even if the services are rendered to foreigners, if the exhibition is organised within the country, then the same would be liable for service tax.

AI Summary

Business exhibition service: exhibitions organised in the country remain liable to service tax despite foreign exhibitors.
The organiser's supply of exhibition services is classifiable as Business exhibition service. Under the Export of Service Rules, 2005, such a service is treated as export only if the service is rendered, wholly or at least partly, outside India; therefore exhibitions organised within India remain liable to service tax even when provided to foreign exhibitors.