License fee, Permit fee etc. Will certainly be considered while the value of taxable service is to be determined if there is a nexus between such expense and the service provided. Inclusion or exclusion from the value of service are common for almost all services. But as per rule 4 of Export of Service Rules, 2005 any service, which is taxable under clause (105) of section 65 of the Act, may be exported without payment of service tax provided it comes under the definition of Export of service as provided in the said rules. Rule 3 of Export of Service Rules classifies the taxable services in three categories:
(a) Immovable property is situated abroad
(b) Service performed outside India and
(c) Recipient is located outside India.
Immovable property situated abroad -The service will be treated as ‘export of taxable service’ and would be eligible for exemption only when following conditions are satisfied:
(a) the immovable property is situated abroad,
(b) the service is delivered outside India and used in business or for any other purpose outside India and
(c) Payment for such service is received in convertible i.e. free foreign exchange
Services performed outside India – The service will be treated as ‘export of service’ if following conditions are satisfied:
(a) It should be at least partly performed outside India.
(b) The service is delivered outside India and used in business or for any other purpose outside India and
(c) Payment for such service is received in convertible i.e. free foreign exchange
Service provided from India, but recipient of service outside India: Remaining services, which fall in third i.e. residual category, will be treated as ‘export of service’ if recipient is located abroad. These can be treated as ‘export of service’, even if the service is provided from India. In case of services falling under third category, there are certain conditions and restrictions if the recipient has a commercial or industrial establishment or any office relating thereto, in India
Hope this gives a clear picture about the provisions of Export of services.