Taxation of Services (Provided from Outside India and received in India) Rules, 2006
Provided from Outside India and received in India
NTF. NO. 11/2006-ST, DT. 19/04/2006 - In exercise of the powers conferred by sections 93 and 94, read with section 66A of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules, namely:-
1. (1) These rules may be called the Taxation of Services (Provided from Outside India and Received in India) (Third Amendment) Rules, 2011.
(2) They shall come into force on the 1st day of May, 2011.
(Rule 1 has been amended vide
NTF. NO. 37/2011-ST, DT. 25/04/2011)
[OLD-
1. (1) These rules may be called the Taxation of Services (Provided from Outside India and Received in India) Amendment Rules, 2011.
(2) They shall come into force on the 1st day of April, 2011.
(Rule 1 has been amended vide
NTF. NO. 23/2011-ST, DT. 31/03/2011)
[OLD-
1. (1) These rules may be called the Taxation of Services (Provided from outside India and Received in India) Amendment Rules, 2010.
(2) They shall come into force on the date of their publication in the Official Gazette.
(Rule 1 has been amended vide
NTF. NO. 16/2010-ST, DT. 27/02/2010)
[OLD-
1. (1) These rules may be called the Taxation of Services (Provided from outside India and Received in India) Second Amendment Rules, 2009.
(2) They shall come into force on the date of their publication in the Gazette of India.
]
(Rule 1 has been amended vide
NTF. NO. 37/2009-ST, DT. 23/09/2009)
[OLD-
1. Short title and commencement.–
(1) These rules may be called the Taxation of Services (Provided from outside India and Received in India) Amendment Rules, 2009.
(2) They shall come into force on the date of their publication in the Official Gazette.
]
(Rule 1 has been amended vide
NTF. NO. 22/2009-ST, DT. 07/07/2009)
[OLD-
(1) These rules may be called the Taxation of Services (Provided from Outside India and Received in India) Second Amendment Rules, 2008.
(2) They shall come into force on the 16th day of May, 2008.
]
(Rule 1 has been amended vide
NTF. NO. 21/2008-ST, DT. 10/05/2008)
[OLD-
(1) These rules may be called the Taxation of Services (Provided from Outside India and Received in India) (Amendment) Rules, 2008.
(2) They shall come into force on the date of their publication in the Official Gazette.
]
(Rule 1 has been amended vide
NTF. NO. 06/2008-ST, DT. 01/03/2008)
[OLD-
(1) These rules may be called the Taxation of Services (Provided from Outside India and Received in India) (Amendment) Rules, 2007.
(2) They shall come into force on the 1st day of June, 2007.
]
(Rule 1 has been amended vide
NTF. NO. 31/2007-ST, DT. 22/05/2007)
[OLD-
(1) These rules may be called the Taxation of Services (Provided from Outside India and Received in India) Rules, 2006.
(2) They shall come into force on the date of their publication in the Official Gazette.
]
2. Definitions.–
In these rules, unless the context otherwise requires–
(a) “Act” means the Finance Act, 1994 (32 of 1994);
(b) “input” shall have the meaning assigned to it in clause (k) of rule 2 of the CENVAT Credit Rules, 2004;
(c) “input service” shall have the meaning assigned to it in clause (l) of rule 2 of the CENVAT Credit Rules, 2004;
(d) “output service” shall have the meaning assigned to it in clause (p) of rule 2 of the CENVAT Credit Rules, 2004;
(e) “India” includes the installations, structures and vessels located in the continental shelf of India and the exclusive economic zone of India, for the purposes of prospecting or extraction or production of mineral oil and natural gas and supply thereof.
(Above clause (e) has been substituted vide
NTF. NO. 16/2010-ST, DT. 27/02/2010)
[OLD-
(e) “India” includes the installations, structures and vessels in the continental shelf of India and the exclusive economic zone of India;
]
(Above (e) has been substituted vide
NTF. NO. 22/2009-ST, DT. 07/07/2009)
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(e) “India” includes the designated areas in the Continental Shelf and Exclusive Economic Zone of India as declared by the notifications of the Government of India in the Ministry of External Affairs numbers S.O.429 (E), dated the 18th July, 1986 and S.O.643(E), dated the 19th September 1996;
]
(f) words and expressions used in these rules and not defined, but defined in the Act shall have the meanings respectively assigned to them in the Act.
3. Taxable services provided from outside India and received in India.–
Subject to section 66A of the Act, the taxable services provided from outside India and received in India shall, in relation to taxable services–
(i) specified in sub-clauses (d), (m)
[OLD- sub-clauses (d)
], (p), (q), (v), (zzq), (zzza), (zzzb), (zzzc), (zzzh), (zzzr), (zzzy), (zzzz), (zzzza), (zzzzm), (zzzzu), (zzzzv) and (zzzzw)
[OLD- and (zzzzm)
][OLD-(zzzz) and (zzzza)
][OLD-(zzzh) and (zzzr)
] of clause (105) of section 65 of the Act, be such services as are provided or to be provided in relation to an immovable property situated in India;
(In clause (i) the letters and words "(zzzzm), (zzzzu), (zzzzv) and (zzzzw)" has been substituted vide
NTF. NO. 37/2011-ST, DT. 25/04/2011)
(In clause (i) the brackets, letters and word "(zzzh), (zzzr), (zzzy), (zzzz) and (zzzza)" has been substituted vide
NTF. NO. 31/2007-ST, DT. 22/05/2007)
(ii) specified in sub-clauses (a), (f), (h),(i), (j), (l),
[OMITTED-(m),
] (n), (o),
[OMITTED-(s), (t), (u),
] (w), (x), (y), (z), (zb), (zc), (zi), (zj), (zn), (zo), (zq), (zr), (zt), (zu), (zv), (zw), (zza), (zzc), (zzd), (zzf), (zzg), (zzh), (zzi), (zzl), (zzm), (zzn), (zzo), (zzp), (zzs), (zzt), (zzv), (zzw), (zzx), (zzy), (zzzd), (zzze), (zzzf), (zzzp), (zzzzg), (zzzzh), (zzzzi), (zzzzk), and (zzzzl)
[OLD-(zzzzh) and (zzzzi)
] [OLD- (zzzf), and (zzzp)
] of clause (105) of section 65 of the Act, be such services as are performed in India:
(In above clause (i), words, brackets and letters "sub-clauses (d), (m)" - substituted & in clause (ii), the brackets and letters "(m), (s), (t), (u)" - omitted vide
NTF. NO. 16/2010-ST, DT. 27/02/2010)
(In clause (ii) the brackets, letters and word "(zzzf), (zzzp), (zzzzg), (zzzzh) and (zzzzi)" has been substituted vide
NTF. NO. 21/2008-ST, DT. 10/05/2008)
Provided that where such taxable service is partly performed in India, it shall be treated as performed in India and the value of such taxable service shall be determined under section 67 of the Act and the rules made thereunder;
Provided further that where the taxable services referred to in sub-clauses (zzg),
[OMITTED-(zzh)
] and (zzi) of clause (105) of section 65 of the Act, are provided in relation to any goods or material or any immovable property, as the case may be, situated in India at the time of provision of service, through internet or an electronic network including a computer network or any other means, then such taxable service, whether or not performed in India, shall be treated as the taxable service performed in India;
(In above proviso "(zzh)" - Omitted vide
NTF. NO. 23/2011-ST, DT. 31/03/2011)
(Above IInd proviso has been inserted vide
NTF. NO. 06/2008-ST, DT. 01/03/2008)
(iii) specified in clause (105) of section 65 of the Act, but excluding–
(a) sub-clauses (zzzo) and (zzzv);
(b) those specified in clause (i) of this rule except when the provision of taxable services specified in clauses (d),(zzzc),(zzzr) and (zzzzm)
[OLD-(d), (zzzc), and (zzzr)
] does not relate to immovable property; and
(c) those specified in clause (ii) of this rule, be such services as are received by a recipient located in India for use in relation to business or commerce.
Provided that where the taxable service referred to in sub-clause (zzzzj) of clause (105) of section 65 of the Act is received by a recipient located in India, then such taxable service shall be treated as taxable service provided from outside India and received in India subject to the condition that the tangible goods supplied for use are located in India during the period of use of such tangible goods by such recipient.
(In rule 3, in clause (i) - "(zzzz), (zzzza), and (zzzzm)", in clause (ii)- "(zzzzh), (zzzzi), (zzzzk), and (zzzzl)" and in clause (iii)(b)- "(d),(zzzc),(zzzr) and (zzzzm)" has been substituted vide
NTF. No. 37/2009-ST, DT.23/09/2009)
(Above proviso has been inserted vide
NTF. NO. 21/2008-ST, DT. 10/05/2008)
4. Registration and payment of service tax.–
The recipient of taxable services provided from outside India and received in India shall make an application for registration and for this purpose, the provisions of section 69 of the Act and the rules made thereunder shall apply.
5. Taxable services not to be treated as output services.–
The taxable services provided from outside India and received in India shall not be treated as output services for the purpose of availing credit of duty of excise paid on any input or service tax paid on any input services under CENVAT Credit Rules, 2004.
Draft Rules for Services provided from outside India New, DATE 01/03/2006 -
1. Short title and commencement.
(1) These rules may be called the Taxation of Services (Provided from Outside India and received in India) Rules, 2006.
(2) They shall come into force on the date of their final publication in the Official Gazette.
2. Definitions.
In these rules, unless the context otherwise requires.
(a) "Act" means the Finance Act, 1994 (32 of 1994);
(b) "India" includes the designated areas in the Continental Shelf and Exclusive Economic Zone of India as declared by the notifications of the Government of India in the Ministry of External Affairs numbers. S.O.429 (E), dated the 18th July, 1986 and S.O.643(E), dated the 19th September 1996;
(c) words and expressions used in these rules and not defined, but defined in the Act shall have the meanings respectively assigned to them in the Act.
3. Taxable services provided from outside India and received in India.
(1) Where any taxable service specified in clause (105) of section 65 of the Act is,
(a) provided or to be provided by a person, who has established a business or has a fixed establishment from which the service is provided or to be provided or has his permanent address or usual place of residence, in a country other than India; and
(b) received by a person (hereinafter referred to as the recipient) who has his place of business, fixed establishment, permanent address or, as the case may be, usual place of residence in India,
then, the service provided from outside India and received in India shall be a taxable service and such service shall be treated as if the recipient had himself provided such service in India, and accordingly all the provisions of the Act and the rules made thereunder shall apply.
(2) The taxable services provided from outside India and received in India referred to in sub-rule (1) shall in relation to taxable services‚
(i) specified in sub-clauses (p),(q), (v), (zzq),(zzza), (zzzb), and (zzzh) of clause (105) of section 65 of the Act, be the taxable services as are provided or to be provided in relation to an immovable property which is situated in India;
(ii) specified in sub-clauses(a), (f), (h),(i), (j), (l), (m), (n), (o), (s), (t), (u), (w),(x), (y), (z), (zb),(zc),(zi),(zj), (zn), (zo), (zq), (zr),(zt), (zu),(zv),(zw), (zza), (zzc), (zzd),(zzf),(zzg),(zzh), (zzi), (zzj), (zzl), (zzm), (zzn), (zzo), zzp), (zzs), (zzt), (zzv), (zzw), (zzx), (zzy),(zzzd),(zzze), and (zzzf) of clause (105) of section 65 of the Act, be the taxable services as are performed inside India:
Provided that if the said taxable service is partly performed inside India, it shall be considered to have been performed inside India;
(iii)other than those specified in clauses (i) and (ii) above, be the taxable services as are received by a recipient located in India, for use in relation to commerce or industry;
Explanation. For the purposes of this sub-rule, taxable services specified in sub-clauses (d), and (zzzc) of clause (105) of section 65 of the Act, which are provided or to be provided in respect of immovable property situated outside India shall not be treated as services provided from outside India and received in India.
4.Taxable services not to be treated as output services. The taxable services provided from outside India and received in India, referred to in rule 3, shall not be treated as output services for the purposes of availment of credit of duty as are paid on input or input service under CENVAT Credit Rules, 2004.
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