Service tax registration in India

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The Export of service Rules, 2005 were notified with effect from 15-03-2005 to determine whether a provision of service will be regarded as export of service. Like export of goods, service can also be exported without payment of duty/tax.

So before we move on to export our services outside India, let us understand in brief the basic conditions required to be fulfilled, so that it can be treated as Export of service.
As per clause (1) of rule 6A of service tax rules, any service provided or agreed to be provided shall be treated as export of service if all the below mentioned conditions satisfied cumulatively :

  • 1. The provider of service is located in the taxable territory
  • 2. The Recipient of service is located outside India
  • 3. The service is not a service specified in section 66D of the Act
  • 4. The place of provision of the service outside India
  • 5. The payment of such service has been received by the provider of service in convertible foreign exchange
  • 6. The provider of service and recipient of service are not merely establishments of a distinct person in accordance with item (b) of Explanation 3 of clause (44) of section 65B of the Act

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