7.1 Globally the taxation of services across different taxing jurisdictions is increasingly moving towards destination-based levy in respect of B2B services while origin-based levy is largely applicable to B2C services. In tune with this practice, certain services are being rearranged as follows:  

(i) Service provided by builders [section 65(105)(zzzzu)] is being added to sub-rule 1(i) and will thus be considered as exported, subject to compliance with other conditions, if the immovable property is situated outside India.  

(ii) Rail travel agent [ 65(105) (zz)] and health check-up or preventive care [65(105)(zzzzo)] are being added to sub-rule 1(ii) and will thus be considered as exported, subject to compliance with other conditions, when they are performed outside India; and  

(iii)Services of credit rating agency [65(105)(x)], market research agency [65(105)(y)], technical testing and analysis [65(105)(zzh)], transport of goods by air [65(105)(zzn)], goods transport agency [65(105)(zzp)], opinion poll [65(105)(zzs)] and transport of goods by rail [65(105)(zzzp)] are being deleted from sub-rule 1(ii) and thus the additional condition of performance outside India will stand removed. Thus they will be considered as exported, subject to compliance with the relevant conditions, if the recipient is located abroad.  

Export of services classification updated: certain services reclassified by performance location or recipient location for export treatment. Budget 2011 amends the Export of Services Rules, 2005 to reclassify specified services for export treatment: builders' services are treated as exported if the immovable property is situated outside India; rail travel agent and health check-up services require performance outside India for export treatment; and several services including credit rating, market research, technical testing, air and rail goods transport, goods transport agency and opinion polls no longer require performance outside India and will be treated as exported if the recipient is located abroad, subject to other relevant conditions.