Export of service to nepal

This query is : Resolved

amit khatri (Querist)
Follow

09 July 2014 We are service tax assessee under erection, commissioning or installation service...We are getting one contract for nepal..will it be exempted from service tax under the condition of export of service..If yes then HOW n if no thn WHY?? . . PLEASE GUIDE US..

CA Pradeep Sharma

CA Pradeep Sharma (Expert)
Follow

09 July 2014 No service tax leviable on service provided in Nepal.

As per RULE 3 OF PLACE OF PROVISIONS OF SERVICE RULES' 2012.

"The place of provision of a service shall be the location of the recipient of service:

Provided that in case the location of the service receiver is not available in the ordinary course of business, the place of provision shall be the location of the provider of service."