Service tax liability - section 271(1)(b)

[ramesh bohra]

we have taken participate in exhibition held at turkey our of country we paid payment directly to exhibitor by us$ and transfer from bank to there a/c inturkey now service tax dept ask us to deposit dervice tax as per the  Section 65 (105)(220) of the Finance Act 1994 is the above service is taxable or not ramesh bohra

[Surender Gupta]

Taxable Services of 65(105)(zzo) shall be treated as import of service only if performed in India partly or wholly. Since whole of the service is being provided in turkey, there can not be any tax on import of service under Finance Act, 1994.

AI Summary

Import of service: no service tax where the service is performed wholly outside India, not taxable as import. Import of service treatment applies only when the taxable service is performed partly or wholly in India; services provided entirely in a foreign jurisdiction are not taxable as import of service under the domestic service tax regime when the place of performance is wholly outside India.