Export of Services

Pankaj Arora (Learner) (3134 Points)
Replied 25 January 2011

It will be taxable because service consumed in india .

Jeevesh Mehta (Advocate- Corporate Commercial & Indirect Tax Advisory) (861 Points)
Replied 25 January 2011

In order to be covered under Export of servises, The services must be provided from India to a service receiver outside India and the payment should be received in convertible foreign exchange.

In your case the services are being provided from India but are also received and consumed in India itself. Therefore the above said conditions of Export Of Services are not satisfied and no exemption can be availed in such transactions.

regards

CA ANKUSH AGGARWAL (CHARTERED ACCOUNTANT) (2782 Points)
Replied 25 January 2011

Originally posted by : Jeevesh
	In order to be covered under Export of servises, The services must be provided from India to a service receiver outside India and the payment should be received in convertible foreign exchange. In your case the services are being provided from India but are also received and consumed in India itself. Therefore the above said conditions of Export Of Services are not satisfied and no exemption can be availed in such transactions. regards

Jyoti Malik (ACCOUNTANT) (2644 Points)
Replied 27 January 2011

In order to be covered under Export of servises,

The services must be provided from India to a service receiver outside India and
the payment should be received in convertible foreign exchange.

BOTH CONDITIONS ARE FULFILL IN ABOVE CASE BUT THE SERVICES CONSUMED BY THIRD PARTY ON BEHALF OF OUR DEBTOR IN INDIA.

WHETHER THIS SERVICE IS TAXABLE OR NOT. (As per notification no-6/2010 of dt 27.02.2010 it is export of services)

Please confirm.

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 27 January 2011

The nature of services are important. Some services 45 or so are liable if the performance is in India. Soem services the recepient shouldbe outside.

Jeevesh Mehta (Advocate- Corporate Commercial & Indirect Tax Advisory) (861 Points)
Replied 27 January 2011

\Dear Jyoti,

There are three categories under export of services

i) Services which are required to be performed in relation to immovable property

ii) Services which are required to be provided from India and can be consumed partly in India and partly outside India.

iii) Service required to be performed in India and consumed outside India.

In your case it seems that neither your services relates to immovable property nor they are party consumed in India and partly outside Inda.

Whole of the services are provided and consumed in India itself. Therefore Export conditions are not satisfied and hence service tax needs to be charged and paid by the assesee\.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 27 January 2011

Taxable Services - Chapter - 66 - Clause - 65(105)(zzu) - Programme Producer - date - 10-09-2004 - Comments

Chapter No. 066

Programme Producer

Comments:

A. As per Paragraph No 6. of Circular No. 96/7/2007 dated 23/8/2007 states that :-

"6. This circular supersedes all circulars, clarifications and communications, other than Orders issued under section 37B of the Central Excise Act, 1944 (as made applicable to service tax by section 83 of the Finance Act, 1994), issued from time to time by the CBEC, DG (Service Tax) and various field formations on all technical issues including the scope and classification of taxable services, valuation of taxable services, export of services, services received from outside India, scope of exemptions and all other matters on levy of service tax. With the issue of this circular, all earlier clarifications issued on technical issues relating to service tax stand withdrawn."

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1. With effect from 1-5-2006 Finance Act 2006 has extended the scope of this service and accordingly, all the person providing this service shall be liable to tax irrespective of the fact that whether that person is commercial not.

2. The programme made for limited persons not for general public will not be taxable.

3. Films are not taxable

4. Charitable Institution producing their programme are not taxable upto 30-4-2006.

5. Scope has been extended with effect from 1-5-2006 by Finance Act, 2006 to levy service tax on every person whether he commercial concern or not.

6. In co- production programme if channel is also participant's only charges received by other professionals programme producer will be taxable.

7. Amounts received prior to 10-9-2004 will be exempt.

8. Telefilms, serials, news programme, talk show are taxable.

9. Live telecast of award functions, public rallies, sports events are taxable.