09 January 2013
The New service tax regime has begun from 01.07.2012.
As per Section 65B(52) Taxable Territory means the territory to which provisions of chapter V of finance Act 1994 apply. that is, whole of India except J & K.
Under Section 66C The central govt has notified PPS (Place of Provison of Service) Rules which determines the service tax liability.
The following conditions are to be satisfied for Export of Services:
a) Service provider is in India b) Service reciepient is outside India c) Service is not a service specified in Negative list d) PPS is outside India e) Payment towards above is receivable in convertible foreign exchange f) Provider and receipients are not merely establishments of same entity.
on satisfaction of the above conditions, the export of services is exempt from tax.
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