Service received abroad not taxable – exemptions rescinded
The government not only thought it had the power to tax services received abroad , but also in a benevolent mood allowed certain exemptions to services abroad like those pertaining to services availed by Indian ships abroad and services availed by individuals like a hair cut in London. Now that the situation is clarified that only services received in India are taxable, these exemptions are no more valid and so are rescinded. They never had any validity as the Indian Government which has no power to collect Service Tax in Kashmir cannot have the power to do so in Canada.
Notification No. dated 19th April, 2006