Draft Rules for Services provided from outside India - Service Tax - F.No.334/5/2006

Draft Rules for Services provided from outside India New DATE 01/03/2006 Taxation of Services (Provided from outside India and Received in India ) Rules, 2006 At present, taxable services provided from outside India and received in India are charged to Service Tax under Explanation occurring at the end of sub-clause (105) of section 65 of the Finance Act, 1994. In the Finance Bill, 2006 it has been proposed to omit the said Explanation and insert a separate comprehensive provision, namely, section 66A, to levy service tax on services provided from outside India and received in India. 2. Taking into account the international practices of treatment of service for the purpose of export of service and other material facts, the Central Government has notified Export of Services Rules, 2005 on 3rd March, 2005 which has come into effect from 15th March, 2005. 3. Applying the same principles followed for Export of Service Rules, 2005, the Taxation of Services (Provided From Outside India and Received in India) Rules, 2006 is proposed to be notified. 4. Draft Rules required to be issued under this section is attached. Tax Research Unit, Department of Revenue, Ministry of Finance solicits the considered views/comments/suggestions on the above mentioned draft rules from all concerned. 5.Views are also invited on categorization of the fifteen specifically included services i.e. 65(105)(zzzi) to (zzzw) under clauses (i), (ii) and (iii) of Rule 3(2) of the draft Rules. 6.The same may be kindly sent to the following address, preferably by email, not later than 31st March 2006. R. Sriram Deputy Secretary (TRU) Ministry of Finance, Department of Revenue 146 F, North Block New Delhi Email : [email protected] F.No.334/5/2006-TRU Note: - To see the draft rules please click the link Rules, than click Service Tax