Place of provision of service under export of service

This query is : Resolved

Meera Joisher (Querist)
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10 October 2012 Suppose I am designing a particular matter for some foreign client & receiving the Consideration for same in Convertible Foreign Exchange. The actual designing is done by my employees in my office situated in taxable service tax territory in India.

1)Under the above circumstances, what shall be the place of provision for this Service?

2)Whether this will be covered under Export of Service under Service Tax Rules?

Thanks for your replies in advance.

Sunil

Sunil (Expert)
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10 October 2012 The first rule and default rule is place of service and that being abroad is not taxable provided renumeration comes in convertible foreign exchange.

Now if you are architect and you are giving a design related to immovable property in India, then the place of provision is India as this rule comes subsequent to default rule.

Now if architect designs property as a general design for receiver to use anywhere or designs specifically for a property in non taxable area, this is subsequent rule to above and would again be not taxable.