Notification No. 13/2006-Service Tax
In exercise of the powers conferred by sections 93 and 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Export of Services Rules, 2005, namely:-
1. (1) These rules may be called the Export of Services (Amendment) Rules, 2006.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Export of Services Rules, 2005 (hereinafter referred to as the said rules), in the preamble, for the words, brackets and figures “ sub-section (1) and sub-section (2) of section 94”, the words and figures “sections 93 and 94” shall be substituted:
3. In the said rules, for rule 3, the following rule shall be substituted, namely:–
“3. Export of taxable service.– (1) Export of taxable services shall, in relation to taxable services‚–
(i) specified in sub-clauses (d), (p), (q), (v), (zzq), (zzza), (zzzb), (zzzc), (zzzh) and (zzzr) of clause (105) of section 65 of the Act, be provision of such services as are provided in relation to an immovable property situated outside India;
(ii) specified in sub-clauses (a), (f), (h), (i), (j), (l), (m), (n), (o), (s), (t), (u), (w), (x), (y), (z), (zb), (zc), (zi), (zj), (zn), (zo), (zq), (zr), (zt), (zu), (zv),(zw), (zza), (zzc), (zzd), (zzf), (zzg), (zzh), (zzi), (zzl), (zzm), (zzn), (zzo), (zzp), (zzs), (zzt), (zzv), (zzw), (zzx), (zzy), (zzzd), (zzze), (zzzf) and (zzzp) of clause (105) of section 65 of the Act, be provision of such services as are performed outside India:
Provided that where such taxable service is partly performed outside India, it shall be treated as performed outside India;
(iii) specified in clause (105) of section 65 of the Act, but excluding‚–
(a) sub-clauses (zzzo) and (zzzv);
(b) those specified in clause (i) of this rule except when the provision of taxable services specified in sub-clauses (d), (zzzc) and (zzzr) does not relate to immovable property; and
(c) those specified in clause (ii) of this rule,
when provided in relation to business or commerce, be provision of such services to a recipient located outside India and when provided otherwise, be provision of such services to a recipient located outside India at the time of provision of such service:
Provided that where such recipient has commercial establishment or any office relating thereto, in India, such taxable services provided shall be treated as export of service only when order for provision of such service is made from any of his commercial establishment or office located outside India.
(2) The provision of any taxable service shall be treated as export of service when the following conditions are satisfied, namely:–
(a) such service is delivered outside India and used outside India; and
(b) payment for such service provided outside India is received by the service provider in convertible foreign exchange.
Explanation.– For the purposes of this rule “India” includes the designated areas in the Continental Shelf and Exclusive Economic Zone of India as declared by the notifications of the Government of India in the Ministry of External Affairs numbers S.O. 429(E), dated the 18th July, 1986 and S.O. 643(E), dated the 19th September 1996.”.
F.No. B1/ 4/2006-TRU
Note.– The principal rules were notified vide notification No. 9/2005 - Service Tax, dated the 3rd March, 2005, G.S.R. 151(E), dated the 3rd March, 2005 and was subsequently amended vide notification No. 28/2005 - service Tax, dated the 7th June, 2005, G.S.R. 370(E), dated the 7th June, 2005.