NISHITH.TV
  • Mumbai
  • Silicon Valley
  • Bengaluru
  • Singapore
  • Mumbai BKC
  • New Delhi
  • Munich
  • New York

Locations

  • Mumbai
  • Silicon Valley
  • Bengaluru
  • Singapore
  • Mumbai BKC
  • New Delhi
  • Munich
  • New York
  • Content
  • Home
  • ABOUT US
  • NDA in the Media
  • Areas of Service
  • Research and Articles
  • Opportunities
  • Contact
  • NDACloud
  • Client Access
  • Member Access
  • Events and Calender
  • How we perform
  • Knowledge anywhere, anytime
  • See our recent deals
  • Up to date legal developments
  • Case studies in M&A

Research and Articles

HTMLPDF

  • Research at NDA
  • Research Papers
  • Research Articles
  • NDA Think Tanks
  • NDA Hotline
  • New Ali Gunjan
  • Japan Desk ジャパンデスク

NDA-Hotline


  • Debt Funding in India Series
  • Private Equity Corner
  • The Startups Series
  • Court Corner
  • Investment Funds: Monthly Digest
  • Insolvency and Bankruptcy Hotline
  • Deal Destination
  • New Publication
  • M&A Interactive
  • Lit Corner
  • Private Debt Hotline
  • Food & Beverages Hotline
  • Companies Act Series
  • Gaming Law Wrap
  • Private Client Wrap
  • GIFT City Express
  • Regulatory Hotline
  • Capital Markets Hotline
  • Tax Hotline
  • Corpsec Hotline
  • Dispute Resolution Hotline
  • M&A Hotline
  • Pharma & Healthcare Update
  • Competition Law Hotline
  • HR Law Hotline
  • IP Hotline
  • Telecom Hotline
  • FEMA Hotline
  • Social Sector Hotline
  • iCe Hotline
  • SEZ Hotline
  • Media Hotline
  • Funds Hotline
  • Education Sector Hotline
  • International Trade Hotlines
  • Other Hotline
  • Real Estate Update
  • Realty Check
  • White Collar and Investigations Practice
  • Legal Update
  • IP Lab
  • Cross Examination
  • Technology & Tax Series
  • Technology Law Analysis
  • Yes, Governance Matters.
  • Financial Service Update
  • Japan Desk ジャパンデスク

Tax Hotline

April 29, 2003

NO LEVY OF SERVICE TAX ON EXPORT OF SERVICES

The Finance Minister while introducing the Finance Bill, 2003 ("Bill") had issued Notification No. 2/2003 dated March 1, 2003 ("Notification No. 2/2003") that has rescinded earlier Notification No. 6/99-Service Tax dated April 9, 1999 ("Notification No. 6/99") . This later Notification exempted taxable service from payment of service tax if the payment for services rendered was received in convertible foreign exchange and the foreign exchange was not repatriated outside India. Consequent to the issue of the Notification No. 2/2003, service tax would be leviable on all taxable services consumed or rendered in India, irrespective of whether the payment therefor is received in foreign exchange or not.

The withdrawal of the Notification No. 6/99 had raised several doubts whether the export of services would continue to remain tax free. In order to address these apprehensions, the Finance Ministry has issued a clarification on April 25, 2003 that the Service Tax is a destination based consumption tax and is not applicable on export of services. With regard to the services of secondary service provider, it is clarified that since such services are consumed in India, service tax would be leviable on the same.

It is also clarified that in case of service consumed/provided in India in the manufacture of goods which are ultimately exported, no credit of service tax paid can be availed or reimbursed at present as inter-sectoral tax credit between services and goods is not allowed.

The Bill has also proposed to increase the rate of s ervice tax from 5 per cent to 8 per cent. In this context, it is clarified that the increased rate of service tax at 8 per cent would be applicable when the Bill is passed. Where invoices are already raised before passing of the Bill, but payments are received after the passing of the Bill, the service tax would be applicable at the rate of 5 per cent. If however the invoice is raised subsequent to the passing of the Bill, the service tax would be applicable at the enhanced rate of 8%.

 
 

Source: http://www.finmin.nic.in/press_room/april_details.htm as visited on April 29, 2003

Mission and Vision


Distinctly Different

What's New


Mid-year Update: Digital Health in India
Pharma & Healthcare Update: June 27,2022
Roe v. Wade Overruled, NGOs may face reduced international funding
Social Sector Hotline : June 27,2022

Events


Webinars

Sustainable Mobility: Opportunities and Challenges
June 09,2022 - June 09,2022

This event is over. For event material please click here


Seminar

Navigating Disputes in India
February 26,2020 - February 26,2020

This event is over. For event material please click here


Round Table

Investing In Net Zero
July 14,2022 - July 14,2022

News Roundup


News Articles

Impact of Supreme Court’s new covidvaccination ruling on India’s employers
May 13,2022

Quotes

TCS case may throw spotlight on job termination in IT industry
June 23,2022

Newsletters


Pharma & Healthcare Update

Mid-year Update: Digital Health in India
June 27,2022

Social Sector Hotline

Roe v. Wade Overruled, NGOs may face reduced international funding
June 27,2022

Pharma & Healthcare Update

Mid-year Regulatory Update 2022: Pharmaceuticals in India
June 24,2022

  • Disclaimer
  • Content
  • Feedback
  • Walkthrough
  • Subscribe
Nishith Desai Associates@2016 All rights reserved.