9911796707
TMI Blog2004 (11) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax. While the services of the local telephone operators would be the major secondary services, the applicant will also be availing of other services such as consultancy/engineering services, on which service tax is leviable. The applicant has stated that he, as an exporter of services and a primary service provider, will be availing of various secondary services, which will ultimately get consumed/ merged with the services being exported and, therefore, service tax should not be levied on such secondary services. 1.5 The applicant has in support of his submissions relied on the Notification No. 8/2003-ST dated 20-6-2003 issued by the Central Government and the Circular No. 56/5/2003 dated 25-4-2003, issued by the Central Board of Excise a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leviable on all taxable services consumed or rendered in India, irrespective of whether the payment thereof is received in foreign exchange or not. 2. In this regard various representations have been received by the Board raising apprehension that because of the withdrawal of the notification No. 6/99, export of service would be affected as it would be costlier in the international markets. 3. The Board has examined the issue. In this connection I am directed to clarify that the service tax is destination-based consumption tax and it is not applicable on export of services. Export of services would continue to remain tax-free even after withdrawal of notification No. 6/99 dated 9-4-1999. Further it is clarified that service consumed/ pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service provider to identify the secondary services with the services being exported", vide the letter No. CE/ST/DL.II/Tech./Misc/04/455 dated 14-9-2004 written by the Deputy Commissioner, Service Tax, Delhi-II. 1.8 The questions framed by the applicant seeking advance ruling from the Authority read as under: "(i) Whether the service tax in first instance is chargeable by the secondary service provider towards the services to international Call Centre (primary service providers) which services constitute 100% exports? If ruling by the Hon'ble Court on above question is Yes, then, the further question for Advance Ruling before the Hon'ble Bench is placed as under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) The valuation of taxable services for charging service tax; (c) The principles to be adopted for the purposes of determination of value of the taxable service under the provisions of Chapter V; (d) Applicability of notifications issued under Chapter V; (e) Admissibility of credit of service tax." 4. as the applicant has confined his reliance to clauses (d) and (e), we shall only consider as to whether the questions stated by the applicant are covered under any of the said clauses. 5. The plea that the secondary services which get consumed/merged in the primary services exported by an international call centre should be exempt from se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars is conferred on the Board under Section 37B of the Central Excise Act, 1944, as made applicable by virtue of Section 83 of the Finance Act, 1994, which also falls under Chapter V. However, the Legislature chose to prescribe only notifications and not circulars in Section 96C (2) (d) of the Finance Act, 1994. Therefore, reliance on clause (d), in our view, is misplaced. 7. The applicant's reliance on clause (e) is not in order, as none of the questions raised by the applicant relate to "credit" of service tax, which is a concept different from "refund". Moreover, the subsequent two questions stated by the applicant, which mention about refund, are simply dependent on an expected affirmative answer from the Authority on the first que ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
