9911796707
TMI Blog2013 (8) TMI 806X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2012; and The provision of service by the applicant to the two recipients named above will amount to export of service within the meaning of Rule 6A of Service Tax Rules, 1994 - It hardly needed to be added that if any material difference was noticed in the facts relating to the transaction when the actual determination was made, it would be open to the concerned authorities to act appropriately according to law. Export of Taxable Services - Notification No. 2/94 - Whether the marketing and support services would qualify as export of taxable services under Rule 6A of the Service Tax Rules , 1994 introduced vide Notification No. 2/94 – S.T. - Held that:- The provisions of Rule 6A of Service Tax Rules, 1994 were satisfied in the case an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany with the objective of strengthening and enhancing sales of its products to its Indian customers. The mandate of the applicant is to provide marketing and sales support for the distribution of floor coverings or carpet manufactured outside India and sold to the customers in India by M/s Tandus Flooring US LLC, located in the United States of America (Tandus US, for short) and Tandus Flooring (Suzhou) Co. Ltd, located in China (Tandus China, for short). The applicant would undertake the responsibility of providing market and support services in relation to the carpets and floor coverings proposed to be sold by Tandus US and Tandus China to the customers located in India through their own dealers or directly. The applicant proposes to e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her clarified during the hearing that the applicant would not receive any payment from the dealers of Tandus US or Tandus China (who are the service recipients) or from any other quarter in connection with the services to be provided under the proposed agreements. It was also clarified during the hearing that the scope of dealer management under the proposed agreement was limited to the applicants acting as a communication channel between the Indian dealers and Tandus US and Tandus China. 4. On the questions presented for ruling, the applicant s submissions are as follows: Question No.1. The applicant has submitted that they are clearly covered by Rule 3 of Place of Provision of Service Rules, 2012 notified by the Government of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the rules ibid for qualifying an activity as amounting to export of service, namely (a) The provider of service is located in the taxable territory, (b) The recipient of service is located outside India, (c) The service is not a service specified in Section 66D of the Act, (d) The place of provision of the service is outside India, (e) The payment for such service has been received by the provider of service in convertible foreign exchange, and (f) The provider of service and the recipient of service are not merely establishments of a distinct person in accordance with item (b) of Explanation 3 to clause (44) of section 65B of the Act. The location of the applicant is within the taxable territory as its business pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Commissioner, we of the view that the place of provision of service would be determined by rule 3 of Place of Provision of Service Rules, 2012 and the place of provision would be the location of the service recipients, namely Tandus US and Tandus China. 7. We also hold that the provisions of Rule 6A of Service Tax Rules, 1994 are satisfied in this case and therefore this would be a case of export of service. 8. On the questions on which advance ruling has been sought we, accordingly, rule that: 1. The place of provision of service to be provided by the applicant to Tandus China and Tandus US shall be the location of the service recipients, i.e. in China and US respectively, in accordance with Rule 3 of Place of Provision of Servi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
