If an Indian Exhibition company agreed to conduct an Exhibition for an Indian company (Like CII, FICCI ...etc) in Hannover Germany , and the amount charged in Indian Rupees . The Exhibitor( Service Receiver ) refused to pay Service tax for this service because the execution of the work in Germany. But the exhibition company ( Service Provider ) argues that the agreement is executed in India and the payment also made in India in indian rupees. so the service receiver is liable to pay service tax in India
Kindly give suggestions about the quary ( on the basis of Sub Rule (1) of Rule 3 of Export of Services Rules 2005 or Circular No:111/05/2009 dtd 24.02.2009 or any other relevant circular and notifications )
20 August 2009
Services provided and recived outside India are otuside the pruview of the taxable services deifntion and therefore there appears to be no liability on this transaction.
20 August 2009
Thanks for your valuabe suggessions,
i have some doubt for clarification, If the consideration received for providing that service is received from India and in Indian ruppes , the dept demands tax for that receipts
if it is wrong , kindly advise me to justify the officials of dept & the exhibition company
More over what are the critiria for export of services like this case ( the Service Provider and Service Receiver in India and the service provided in outside India ) Most of these cases are in the field of exhibtion & Event management
if any one have some previous cases / circulars about these issue kindly forward to me
CAclubindia
