Service tax applicability on foreign exhibitors, Service Tax

[MAHESH KR]

We organise exhibitions in India. Whether foreign exhibitors are also supposed to be charged service tax. Pl Advice. thanks mahesh kr

Posts / Replies

[Ramanujam V]

The service rendered by you would fall under Business exhibition service (Sec.65(105)(zzo). Under the Export of Service Rules, 2005, the service fall under category 3(ii) and thus considered as export only if the service (atleast partly) is rendered outside the country. Thus, even if the services are rendered to foreigners, if the exhibition is organised within the country, then the same would be liable for service tax.