J&K HC: Dispute Involving Elements of Criminality Not Automatically Excluded from Arbitration  ||  J&K HC: Dispute Involving Elements of Criminality Not Automatically Excluded from Arbitration  ||  Karnataka Govt. Proposes Bill to Provide 50-75% Kannadiga Quota in Private Jobs  ||  Madras High Court: Investigation Under PMLA Against Private Contractors, Stopped  ||  All. HC: In UP, Principle of ‘No Pay No Work’ Not Applicable on State Government Employees  ||  Del. HC: Notice Issued on Plea for Reservation of 33% Seats for Women in Lawyers' Bodies Elections  ||  SC: Not Uncommon for Diff. Statutes Concerning Similar Area of Law to Have Convergence of Interest  ||  Supreme Court: Maintenance or Permanent Alimony Should Not be Penal  ||  SC: No Indefeasible Right to Pay Parity Unless Competent Authority Equates Two Posts  ||  Tel. HC: HC has Limited Power in Matter of Granting Permission to Withdraw Appeal    

Rama Cylinders Pvt Ltd vs C.C.E. & S.T. - (Customs, Excise and Service Tax Appellate Tribunal) (26 Sep 2022)

Service can be taxable in the hands of the recipient in India only when the part of it is performed in India

MANU/CS/0254/2022

Service Tax

The issue involved in the present case is that whether the Appellant is liable to pay service tax in respect of exhibition service provided by foreign service provider in respect of exhibition in abroad on behalf of the Appellant for the period 2006-07, 2007-08 and 2009-10.

The Appellant submits that, the service was provided in countries like Pakistan, Egypt, Bangkok and Ukraine by the service provider of the said respective countries. He submits that, the service provider had provided the said service namely, Business Exhibition Service outside India only and the appellant had received the said service then and there only i.e. outside India. Even the service was not provided partly in India, therefore, the service is not liable to tax in the hands of the Appellant. He submits that, even the service is not covered as import of service in terms of Taxation of Service (Provided from outside India and received in India) Rules, 2006.

In the present case, the service provided by the overseas service provider is Business Exhibition Service. The service provider i.e. organiser of exhibitions are located in the countries such as Pakistan, Egypt, Bangkok and Ukraine and no any part of the service was provided in India. Entire service was provided outside India only, therefore, the locations of service is outside India. In such case, service tax cannot be levied in India. Even as per Rule 3 of Sub Rule (II) of Taxation of Service (Provided from Outside India and Received in India) Rules 2006, a service can be taxable in the hand of the recipient of the service in India only when the part of the service is performed in India.

In the present case, admittedly the whole of the service was provided outside India and received outside India, therefore, even in terms of the said rule, the service tax is not leviable on the Business Exhibition Service received by the appellant which was performed outside India hence not taxable in the hands of the appellant. Accordingly, the impugned order is set aside. Appeal allowed.

Tags : TAX   LEVY   LEGALITY  

Share :        

Disclaimer | Copyright 2024 - All Rights Reserved