1 / 26

Export of Services

Export of Services. by g. natarajan advocate & cost accountant swamy associates. Era of simplicity…. Notification 2/1999 Dt. 28.02.1999. Notification 6/1999 Dt. 09.04.1999. Rescinded by Notification 2/2003 Dt. 01.03.2003 Notification 21/2003 Dt. 20.11.2003.

mattox
Download Presentation

Export of Services

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Export of Services by g. natarajan advocate & cost accountant swamy associates

  2. Era of simplicity… Notification 2/1999 Dt. 28.02.1999. Notification 6/1999 Dt. 09.04.1999. Rescinded by Notification 2/2003 Dt. 01.03.2003 Notification 21/2003 Dt. 20.11.2003. Rescinded by Notification 10/2005 w.e.f. 15.03.05

  3. Era of complexity… Export of Services Rules, 2005 Introduced vide Notification 9/2005 Dt. 03.03.2005 With effect from 15.03.2005. Amended by 28/2005 Dt. 07.06.2005 With effect from 16.06.2005. Amended by 13/2006 Dt. 19.04.2006 With effect from 19.04.2006

  4. Basic thumb rules. Service must be provided from India and used outside India. Payment for such service must be received in convertible forex.

  5. Category I The service must be in relation to immovable property situated outside India.

  6. Examples An Indian construction company, building a commercial complex, in Afghanistan. An interior decorator, being engaged for beautification of “White House”. Mining gold in Pakistan.

  7. Category II The service must be performed outside India, at least partly.

  8. Examples Despatch through courier to a foreign destination. Tour operator, covering Pakistan also. Madonna inviting an Indian beautician. Chartered Accountant, auditing the accounts of Britney Spears. Putting up a pandal, along Indo-Nepal boarder, covering a bit of Nepal too.

  9. Category III If provided in relation to business or commerce - the recipient should be located outside India. Otherwise - the recipient should be located outside India, at the time of provision of such service. If the recipient has a presence in India, the order for service must be from outside India.

  10. Examples Consulting engineer, rendering service to a foreign client. Downloading web content, by a foreign national. Soliciting orders for a foreign company. Job work for a foreign principal. Manpower recruitment for a foreign company.

  11. What if services are exported? No Service tax needs to be paid on export of Services. (Rule 4 of Export of Service Rules, 2005) If paid, rebate can be claimed. (Rule 5, ibid and Notification 11/2005) Rebate of duties of excise / service tax, suffered on inputs / input services, can be claimed. (Rule 5, ibid and Notification 12/2005)

  12. What if services are exported? Cenvat can be availed for the inputs / input services used for the exported services. (Cenvat Credit Rules, 2004) Refund of unutilized credit. (Rule 5 of CCR, 2004 & Notification 5/2006)

  13. THANKS

More Related