TaxTMI 
TaxTMI 
A Crane Hiring Company in India signed a contract to provide their service in Bhutan, and the company raising monthly bills in Bhutan currency and they are receiving money in India. My Query is that what will be the implication of service tax for the money received in India from Bhutan against the service provided in Bhutan?
Service Tax Applicability- Service given to Bhutan
25 Feb 2013 
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Place of provision of services determines service tax applicability for cross-border services performed abroad.
Applicability of service tax for crane-hire services performed in Bhutan but paid into India depends on the Place of Provision of Services Rules 2012 and the Point of Taxation Rules. The nature and mode of performance of the service must be tested against those rules to determine whether the service is treated as provided in India (and thus taxable) or outside India (and thus not taxable under those provisions). (AI Summary)
Applicability of service tax for crane-hire services performed in Bhutan but paid into India depends on the Place of Provision of Services Rules 2012 and the Point of Taxation Rules. The nature and mode of performance of the service must be tested against those rules to determine whether the service is treated as provided in India (and thus taxable) or outside India (and thus not taxable under those provisions). (AI Summary)