TaxTMI 
TaxTMI 
Trading from Abreoad to Abroad treated as Ecempted Service?
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....rading from Abreoad to Abroad treated as Ecempted Service?<br> Query (Issue) Started By: - P Ovhal Dated:- 7-6-2016 Last Reply Date:- 9-6-2016 Service Tax<br>Got 7 Replies<br>Service Tax<br>Dear Experts My questions about Rule 6 of CCR Trading sales activity is a Taxable Service? if trading sale make form abroad to abroad, trader can provide a Exempted Service? and liable to reverse CENVAT credi....
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....t U/R 6? Thanks Reply By Ganeshan Kalyani: The Reply: Sir, trading in goods is not a service liable for service tax. Thanks. Reply By Rajagopalan Ranganathan: The Reply: Sir, As per Section 66D (e) of Finance Act, 1994 trading of goods is in the Negative List. hence the same is not liable to service tax. This is true for the activity of trading undertaken within taxable territory, that is, I....
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....ndia excluding the State of Jammu & Kashmir. When trading within taxable territory is not liable to service tax, such activity carried out abroad (non-taxable territory is not at all taxable. Reply By KASTURI SETHI: The Reply: Dear Sh.P. Ovhal, What I understand that you want to know whether cenvat credit is to be reversed on account of trading activity carried out from abroad to abroad. It is ....
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....a fact that trading of goods is in the Negative List. Services which are listed in Section 66 D of the Act as Negative List of services on which no service tax is levied under Section 66 B of the Act shall be treated as exempted service for the purpose of reversal of cenvat credit under Rule 6 (3) of Cenvat Credit Rules, 2004. Now presuming that you are not using common input services for providi....
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....ng non-taxable service from abroad to abroad, you are not required to include the said value while arriving at the exact amount of cenvat credit to be reversed under Rule 6(3) of Cenvat Credit Rules. In case you are using common input services for providing non-taxable service i.e. trading of goods from abroad to abroad, you are required to include the value of trading carried out abroad to abroa....
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....d. What is the factual position ? You know. This is my view. Reply By Ganeshan Kalyani: The Reply: Sir, what can be the services used in India for trading outside India ? Reply By KASTURI SETHI: The Reply: Sh.Ganeshan Kalyani Ji, These input services are as under:- 1. Computer network 2.Telecommunication 3. Advertisement 4.Sales promotion 5.Business exhibition 6.Event Management 7. Mark....
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....et research 8.Financing etc. The assessee may or may not be using all these. Reply By Ganeshan Kalyani: The Reply: Sir, thanks for sharing your valuable views. Thanks. Reply By KASTURI SETHI: The Reply: Sh.Ganeshan Kalyani Ji, I forgot to mention 'Accounting Services' in my above reply. One of my clients is providing accounting services to the American companies located in America.....
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.... He is preparing Balance Sheets (including Profit & Loss Account) for them. My client has hired three accountants in Delhi, Jaipur and Chandigarh.They prepare and my client who is C.A. gives the final touch. In the era of High Technology, one can provide so many services across the world. Owing to advancement in Science & Technology, one can earn money while sitting in India. Distance has vanished....
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