India is One – For Export and Import of services
PLEASE refer to our story India may be one but service tax has two Indias : one for export of services another for import of services!
We had reported,
The definition of India appearing in Import of Services has been amended vide Notification No 22/09 dt . 7/07/2009 on similar lines of Notification No. 21/2009 i.e as constituting “installations, structures and vessels in the continental shelf of India and the exclusive economic zone of India”. However the definition of ‘India' appearing in Export of Services rules (Notification No. 9/2005-ST) is left untouched. Thus ‘India” has one meaning for import of services and another meaning for export of services.
We are happy to report that the lapse has now been rectified. The omission is made good in the Export of Services Rules, 2005 to include the installations, structures and vessels in the continental shelf of India and the exclusive economic zone of India in the definition of India.
Service Tax Notification No. , Dated: August 19, 2009