TaxTMI 
TaxTMI 
2013 (8) TMI 806
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....ng on the following questions: Question No. 1: What would be the place of provision of the marketing and support services provided by Tandus India to Tandus US and Tandus China in terms of the Place of Provision of Service Rules 2012 (introduced vide Notification No. 28/2012 - S.T. dated 20-6-2012) Question No. 2: Whether the marketing and support services provided by Tandus India to Tandus US and Tandus China would qualify as export of taxable services under Rule 6A of the Service Tax Rules , 1994 (as amended from time to time)(introduced vide Notification No. 2/94 - S.T. dated 28.6.1994. 2. It has been stated in application that the applicant is a wholly owned Indian Subsidiary of M/s Tandus Flooring Asia Pte Ltd # 8 Ubi Road 2, #01-06....
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....cts and / or designers, contractors of the customers of Service recipients in order to assist the customers in selecting the products, based on factors such as budgets etc.; (f) Communicate to the Service Recipients about the customer's comments / decision / orders etc; and (g) Provide written reports regarding client contacts, market development, competition, pricing, advertising, potential or new market for the new competing products and their pricing. 3. In consideration of the services to be provided by it, the applicant will receive service fees in freely convertible foreign exchange from Tandus US and Tandus China. The fees will correspond to the operating costs of the applicant and arm's length markup determined in accordance with....
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....le 3 of the said Provision of Service Rules, 2012 stipulates that place of provision of a service generally shall be location of the service recipient. This is the default provision from which the succeeding rules carve out exceptions. (c) They are covered by none of these exceptions, namely Rules 4 to 12 of these Rules. Consequently in their case the place of provision of service shall be the location of the service recipients. Therefore, according to their understanding, the place of provision of services rendered by them to Tandus US and Tandus China shall be location of Tandus US and Tandus China respectively, outside India. Question No.2 On question No. 2 the applicant has submitted that their case would qualify as export of servic....
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....e respective laws, copies of which have been furnished by them. Consequently, the bar under clause of (f) above would not apply to their case. Therefore, according to them, the case meets the requirements of rule 6A of the rules and the answer to Question No. 2 is in the affirmative. 5. The Commissioner in his comments has confirmed that this is a case of service proposed to be provided from Indian territory to a business entity located outside India. Referring to CBEC's circular No. 111/5/2009-ST dated 24.2.2009, he has stated that the benefit of service accrues outside India and therefore according to him this case falls within the meaning of export of services. While confirming the factual aspects of application, he has broadly concurre....