Service Tax — Services provided outside the limits of Indian territorial waters not liable to tax - Service Tax - 36/04/2001

This Circular has been rescinded by Circular No. 93/4/2007-ST, Dated: May 10, 2007 Service Tax — Services provided outside the limits of Indian territorial waters not liable to tax Service Tax Circular No. 36/4/2001 Dated 8-10-2001 I am directed to say that question has arisen whether services provided outside the limits of the Indian territorial waters are liable to Service Tax or not. The matter has been examined. At present the levy of service tax extends to the whole of India except the State of Jammu and Kashmir. The expression "India" includes the territorial waters of India. Indian territorial waters extend up to twelve nautical miles from the Indian land mass. Chapter V of the Finance Act which governs the levy of Service Tax has not extended to the levy to designated areas in the Continental Shelf and the Exclusive Economic Zone of India (as has been done in case of Central Excise vide Notification No. 166/87-C.E., dated 11-6-87 and in case of Customs by Notification Nos. 11/87-Cus., Dated 14-1-87 64/97-Cus., dated 1-12-97). It is, therefore, clarified that the services provided beyond the territorial waters of India are not liable to Service Tax as provisions of Service tax have not been extended to such areas so far. Trade and field formations may be advised accordingly. Receipt of this Circular may please be acknowledged. Hindi version will follow.