Service Tax Notifications consequent to Finance Act 2009
Export and import of Services.
THOUGH we all know, a little recap may not be out of place. As per the Export of Services Rules, 2005, there are three categories of services which are treated as export of services.
1. services provided in relation to an immovable property situated outside India
2. services performed outside India
3. Services to a recipient located outside India.
The Rules specify which of the services are to be categorised in each of the above three categories.
Now in the Finance Act, 2009 three more services, namely Cosmetic surgery, Legal Consultancy and Coastal transport were added were added. But the Rules were not so far amended to include these services in any of the three categories.
When we pointed this out, a Netizen had commented that those services which are not specifically mentioned in (1) or (2) would automatically fall under category (3).
Now the Rules have been amended to place ‘Legal Consultancy’ in Category (1) and Cosmetic Surgery and Coastal transport are included under category (2).
Similar (converse) are the provisions for The Taxation of Services (Provided from Outside India and Received in India) Rules, 2006.
And similar amendments are made in these Rules also.
Notification No. 37/2009 – Service Tax: and Notification No. 38/2009 – Service Tax: Dated 23 rd September, 2009