https://www.taxtmi.com/forum/issue?id=109369 Whether foreign-currency consideration for tooling development performed in India for exported components is taxable hinges on classification: if the process amounts to manufacture, excise duty applies; if not, service tax applies. Additionally, excise duty may be payable on the amortised value of tooling when inputs produced using the tooling are removed. A competing position applies the Export of Service Rules, 2005 and Place of Provision Rules, 2012 to treat the service as performed outside India and thus not subject to service tax, with supporting Board circulars referenced. en-us Tue, 03 Nov 2015 15:58:30 +0530 Thu, 23 Jan 2025 15:56:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=109369 Whether foreign-currency consideration for tooling development performed in India for exported components is taxable hinges on classification: if the process amounts to manufacture, excise duty applies; if not, service tax applies. Additionally, excise duty may be payable on the amortised value of tooling when inputs produced using the tooling are removed. A competing position applies the Export of Service Rules, 2005 and Place of Provision Rules, 2012 to treat the service as performed outside India and thus not subject to service tax, with supporting Board circulars referenced. Discussion-Forum Central Excise Tue, 03 Nov 2015 15:58:30 +0530 https://www.taxtmi.com/forum/issue?id=109369