Import of Services - rules notified
“Taxation of Services (Provided from Outside India and Received in India) Rules, 2006” is notified with effect from 19.4.2006. The salient features are:-
Taxable services received in India shall mean,
(I) In relation to the following services, the services in relation to immovable property situated in India.
1. general insurance | 6. site formation and clearance, |
2. architect | 7. dredging |
3. interior decorator | 8. survey and map-making |
4. real estate agent | 9. construction of complex |
5. commercial or industrial construction | 10. auction of property |
(II) In relation to the following services, if they are performed in India:-
1. stock-broker | 21. port | 41. opinion poll agency |
2. courier agency | 22. authorised service station | 42. outdoor caterer |
3. custom house agent | 23. beauty parlour | 43. survey and exploration of mineral |
4. steamer agent | 24. cargo handling agency | 44. panadal or shamiana contractor |
5. clearing and forwarding agent | 25. dry cleaning | 45. travel agent |
6. air travel agent | 26. event manager | 46. forward contract |
7. Mandap keeper | 27. fashion designer | 47. cleaning activity |
8. tour operator | 28. health club | 48. club or association |
9. rent-a-cab scheme | 29. storage or warehouse keeper | 49. packaging activity |
10. practicing chartered accountant | 30. commercial training or coaching centre | 50. transport of goods in containers by rail |
11. practicing cost accountant | 31. erection, commissioning and installation | |
12. practicing company secretary | 32. internet cafe | |
13. security agency | 33. maintenance or repair | |
14. credit rating agency | 34. technical testing and analysis agency | |
15. market research agency | 35. inspection and certification agency | |
16. underwriter | 36. other port | |
17. photography studio | 37. airports authority | |
18. holding of convention | 38. air craft operator | |
19. video production agency | 39. business exhibition | |
20. sound recording studio | 40. goods transport agency |
If a service is partly performed in India and partly abroad, it will be deemed as performed in India and tax has to be paid accordingly.
(III) Other Services with certain exceptions which are received by a recipient located in India for use in relation to business or commerce.
Registration: Recipients of taxable service in India are required to be registered. Were they not earlier?
Not to be treated as output services: The imported services will not be treated as output services and no credit can be availed/used in respect of those services. Please see Output service – Cenvat Credit Rules amended above.
Notification No. dated 19th April, 2006