18 December 2010
Please Explain the Term " place of business" used in Section 66A(1)(effective from 18-4-2006) in respect of Import of Service.
A ltd. is a company of USA. B ltd, of Japan povide services to A ltd. which are belongs to A company for working in USA. One person is working in india on behalf of A ltd. B ltd. raised bill on A ltd. with USA address. On that bill in discription B ltd. mention the Indian address of A ltd. Is this is consider as import of services?
Is this indian address is consider as place of business in india?
18 December 2010
Dear Ganisht Ji, If I am right M/s A Ltd having palce of business in India CONSIDERED AS SERVICES RENDERED IN INDIA AS EXPORT OF SERVICES TO A LTD.
Meaning of Export of taxable service - Following conditions are common in respect of all taxable services - (a) The service should be provided from India and used outside India [rule 3(2)(a) of Export of Service Rules] and (b) Payment for such service is received by the service provider in convertible foreign exchange [rule 3(2)(b) of Export of Service Rules].
In addition, further conditions apply to different categories of services. Rule 3 of Export of Service Rules classifies the taxable services in four categories –
Immovable property should be situated abroad [rule 3(i)]
Service should be at least partly performed outside India [rule 3(ii)]
Service can be provided firm Indian but recipient should be located outside India and order should be received from outside India [rule 3(iii)]
Services which not be treated as ‘export of services’ under any situation.
WITH RESPECT TO YOUR QUERY ON SECTION 66A (1)provides that where any service specified in section 65(105) of Finance Act, is,— (a) provided or to be provided by a person who has established a business OR has a fixed establishment from which the service is provided or to be provided or has his permanent address or usual place of residence, in a country other than India
PERSON OF INDIA IS FULLY COVERED FOR PLACE OF SERVICES AS HIS COMPANY'S PALCE OF BUSINESS LOCATED IN INDIA.
CAclubindia
