Rule 3 - Export of taxable service - Export of Services Rules, 2005

1 3. Export of taxable service .- (1) Export of taxable services shall, in relation to taxable services.- (i) specified in sub-clauses (d), 10 (m), (p), (q), (v), (zzq), (zzza), (zzzb), (zzzc), 3 ( zzzh), (zzzr), (zzzy), (zzzz), (zzzza), (zzzzm), 13 (zzzzu), 16 (zzzzv) and (zzzzw) of clause (105) of section 65 of the Act, be provision of such services as are provided in relation to an immovable property situated outside India; 14 [(ii) specified in sub-clauses (a), (f), (h), (i), (j), (l), (n), (o), (w), (z), (zb), (zc), (zi), (zj), (zn), (zo), (zq), (zr), (zt), (zu), (zv), (zw), (zz), (zza), (zzc), (zzd), (zzf), (zzg), (zzi), (zzl), (zzm), (zzo), (zzt), (zzv), (zzw), (zzx), (zzy), (zzzd), (zzze), (zzzf), (zzzzg), (zzzzh), (zzzzi), (zzzzk), (zzzzl) and (zzzzo) of clause (105) of section 65 of the Act, be provision of such services as are performed outside India.] Provided that where such taxable service is partly performed outside India, it shall be treated as performed outside India; 5 [Provided further that where the taxable services referred to in sub-clauses (zzg) 15 [***] 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 outside 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 outside India, shall be treated as the taxable service performed outside India] (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 sub-clauses 9 (d),(zzzc),(zzzr) and (zzzzm) does not relate to immovable property; and (c) those specified in clause (ii) of this rule, when provided in relation to business or commerce, be provision of such services to a recipient located outside India and when provided otherwise, be provision of such services to a recipient located outside India at the time of provision of such service: Provided that where such recipient has commercial establishment or any office relating thereto, in India, such taxable services provided shall be treated as export of service only when order for provision of such service is made from any of his commercial establishment or office located outside India. 7 [Provided further that where the taxable service referred to in sub-clause (zzzzj) of clause (105) of section 65 of the Act is provided to a recipient located outside India, then such taxable service shall be treated as export of taxable service subject to the condition that the tangible goods supplied for use are located outside India during the period of use of such tangible goods by such recipient.] 2 [(2) The provision of any taxable service specified in sub-rule (1) shall be treated as export of service when the following conditions are satisfied, namely:- 12 (***) (b) payment for such service 4 (***) is received by the service provider in convertible foreign exchange. 8 [ Explanation.- For the purposes of this rule "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.]] ************************** Notes :- 1. Has been substituted vide Notification No. 13/2006 dated 19/4/2006 , before it was read as, "3. Export of taxable service.- The export of taxable service shall mean,- (1) in relation to taxable services specified in sub-clauses (d), (p), (q), (v) and (i) (zzq), (zzza), (zzzb), (zzzc) and (zzzh) of clause (105) of section 65 of the Act, such taxable services as are provided in relation to an immoveable property which is situated outside India; (ii) Provided that for the purposes of this sub-rule, any taxable services provided shall be treated as export of services only if- (a) such service is delivered outside India and used in business or for any other purpose outside India; and (b) payment for such service provided is received by the service provider in convertible foreign exchange. (2) in relation to taxable services 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) and (iii) (zzy) (zzzd), (zzze) and (zzzf) of clause (105) of section 65 of the Act, such services as are performed outside India: Provided that if such a taxable service is partly performed outside India, it shall be considered to have been performed outside India; (iv) Provided further that for the purposes of this sub-rule, any taxable services provided shall be treated as export of services only if- (a) such service is delivered outside India and used in business or for any other purpose outside India; and (b) payment for such service provided is received by the service provider in convertible foreign exchange. (3) in relation to taxable services, other than,- (i) the taxable services specified in sub-clauses (a), (f), (h), (i), (j), (l), (m), (n), (o), (p), (q), (s), (t), (u), (v), (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), (zzq), (zzs), (zzt), (zzv), (zzw), (zzx) and (v) (zzy) (zzza), (zzzb), (zzzd), (zzze), (zzzf) and (zzzh); and (ii) the taxable service specified in sub-clause (vi) "(d) and(zzzc)" as are provided in relation to an immoveable property, of clause (105) of section 65 of the Act,- (i) such taxable services which are provided and used in or in relation to commerce or industry and the recipient of such services is located outside India: Provided that if such recipient has any commercial or industrial establishment or any office relating thereto, in India, such taxable services provided shall be treated as export of services only if- (a) order for provision of such service is made by the recipient of such service from any of his commercial or industrial establishment or any office located outside India; (b) service so ordered is delivered outside India and used in business outside India; and (c) payment for such service provided is received by the service provider in convertible foreign exchange; (ii) such taxable services which are provided and used, other than in or in relation to commerce or industry, if the recipient of the taxable service is located outside India at the time when such services are received. Explanation.- For the purposes of this rule "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 Nos. S.O.429 (E), dated the 18th July, 1986 and S.O.643(E), dated the 19th September 1996." (i). For the word, brackets and letters "and (zzq)", the brackets, letters and word ", (zzq), (zzza), (zzzb), (zzzc) and (zzzh)" has been substituted vide Notification No. 28/2005 dated 7/6/2005 (ii). Has been inserted vide Notification No. Supra (iii). For the word, brackets and letters "and (zzy)", the brackets, letters and word ", (zzy), (zzzd), (zzze) and (zzzf)" has been substituted vide Notification No. Supra (iv). Has been inserted vide Notification No. Supra (v). For the word, brackets and letters "and (zzy)", the brackets, letters and word ", (zzy), (zzza), (zzzb), (zzzd), (zzze), (zzzf) and (zzzh)" has been substituted vide Notification No. Supra (vi). For the brackets and letter "(d)", the brackets, letters and word "(d) and (zzzc)" has been substituted vide Notification No. Supra 2. Has been substituted vide Notification No. 2/2007 dated 1/3/2007 , before it was read as, ["The provision of any taxable service shall be treated as export of service when the following conditions are satisfied, namely:- (a) such service is delivered outside India and used outside India; and (b) payment for such service provided outside India is received by the service provider in convertible foreign exchange. Explanation.- For the purposes of this rule "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"] 3. For the brackets, letters and word "(zzzh) and (zzzr)", the brackets, letters and word "(zzzh), (zzzr), (zzzy), (zzzz) and (zzzza)" have been substituted; vide Notification No. 30/2007 dated 22/5/2007 . letters and word "(zzzz) and (zzzza)", the brackets, letters and word "(zzzz), (zzzza), and (zzzzm)" have substituted vide Notification No. 38/2009-Service Tax dated 23-9-2009 . 4. The words "provided outside India" has been omitted vide Notification No. 30/2007 dated 22/5/2007 5. In sub-rule (1), in clause (ii), after the proviso, second proviso has bee inserted vide notification no. 5/2008 ST dated 1-3-2008 6. In clause (ii), for the brackets, letters and word "(zzzf) and (zzzp)", the brackets, letters and word "(zzzf), (zzzp), (zzzzg), (zzzzh) and (zzzzi)" substituted vide notification no. 20/2008 dated 10-5-2008 w.e.f. 16-5-2008. For the letters and word "(zzzzh) and (zzzzi)", the brackets, letters and word "(zzzzh), (zzzzi), (zzzzk), and (zzzzl)" have substituted vide Notification No. 38/2009-Service Tax dated 23-9-2009 7. in clause (iii), after the proviso, the second proviso inserted vide notification no. 20/2008 dated 10-5-2008 w.e.f. 16-5-2008 8. Substituted vide Notification No. 25/2009-Service Tax dated 19-8-2009 , before substitution it was read as, " Explanation.- For the purposes of this rule "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." This explanation was again substitute vide Notification No. 06/2010-Service Tax dated 27-2-1010 , before substitution it was read as, " Explanation.- For the purposes of this rule "India" includes the installations, structures and vessels in the continental shelf of India and the exclusive economic zone of India." 9. For the letters and word "(d),(zzzc) and (zzzr)",the brackets, letters and word "(d),(zzzc),(zzzr) and (zzzzm)" have substituted vide Notification No. 38/2009-Service Tax dated 23-9-2009 10. Inserted vide Notification No. 06/2010-Service Tax dated 27-2-2010 11. Omitted vide Notification No. 06/2010-Service Tax dated 27-2-2010 , earlier it was (m), (s), (t), (u). 12. Omitted vide Notification No. 06/2010-Service Tax dated 27-2-2010 . Before omission it was read as, "(a) such service is provided from India and used outside India; and" 13. Inserted vide notification no. 12/2011 ST dated 1.3.2011 14. Substituted vide notification no. 12/2011 ST dated 1.3.2011 w.e.f. 1.4.2011, before it was read as, (ii) specified in sub-clauses (a), (f), (h), (i), (j), (l), 11 [*], (n), (o), 11 [***], (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), 6 (zzzf), (zzzp), (zzzzg), (zzzzh), (zzzzi), (zzzzk), and (zzzzl)" of clause (105) of section 65 of the Act, be provision of such services as are performed outside India: 15. The brackets and letters (zzh) omitted by Notification no. 22/2011 ST dated 31.3.2011 16. Inserted vide notification no. 36/2011 ST dated 25-4-2011 w.e.f. 1.5.2011