Are you into export services or about to be in export? Whatever the position is, if you are heeding to or already into it, you must know about service tax on export of services. In this article, we have segmented each sub topics to give you clear idea on every niche. The topics here we have covered are- service tax on exports, what is basically export of services, negative list of service tax, place of provision of services, Payment in Convertible Foreign Exchange, Not Merely Establishments of a Distinct Person and Service Export from India Scheme. So, let’s see how these elaborated points may help you in the sector.

Administration assesses on administration trades goes under the domain of the Export of Service Rules, 2005. Like fare of products from India, administrations can likewise be traded without installment of administration duty or obligations for export of services. Notwithstanding, it is vital to comprehend the Export of Service Rules, 2005 to pass judgment if an administration given will be viewed as fare of administration. On the off chance that an administration rendered isn’t made a decision as a fare of administration, at that point benefit assess is relevant for export of services.

Exports that have service tax imposed on it

In the above video, Mr. S. Jaikumar, Advocate, Swamy Associates clarifies the materialness of administration charge on fare of administrations.

What is Basically Export of Services?

Administrations that are considered to be fare of administrations is excluded from administration impose for export of services. According to the Service Tax Rules, any administration gave or consented to be given will be treated as fare of administration if the majority of the beneath specified conditions are met:


  • The supplier of administration is situated in India, aside from the State of Jammu and Kashmir.


  • The beneficiary of administration is situated outside India.


  • The administration isn’t indicated in the negative rundown of the administration assess act.


  • The place of arrangement of the administrations is outside India .


  • The installment of administration has been gotten by the supplier in convertible remote trade.


  • The supplier of administration and beneficiary of administration are not just foundations of an unmistakable individual.


A portion of the conditions recorded above are examined in detail underneath.

Export of Services Tax’s negative List

The negative rundown of administration assess contains action for which benefit impose isn’t material for export of services. A portion of the things in the negative rundown of administration assess are:


  • Administrations by the Reserve bank of India;


  • Administrations by a remote strategic mission situated in India.


  • Exchanging of merchandise.


  • Any procedure adding up to fabricate or generation of products.


Provision of export of Services’ place

Place of arrangement of administrations assumes an essential job in deciding the relevance of administration charge on fare of administrations. The place of arrangement of administration is normally the area of administration beneficiary. On the off chance that the area of administration beneficiary isn’t accessible, at that point the area of administration given will be according to the place of arrangement of administrations for export of services.

Convertible Foreign Exchange’s payment

For an administration to be considered as a fare of administration, the installment for the administration must be gotten in convertible outside trade. The administration beneficiary possibly required to deliver proof of receipt of the installment in convertible outside trade with the end goal to guarantee the advantage of discount.

Establishments of a Distinct Person that are not mere

In the event that a man has one foundation in an assessable domain and another foundation in a non-assessable region, administrations given by the foundation having a place with the individual won’t be treated as fare of administration for export of services.

India Scheme’s export of services

Administration traded from India is qualified for remuneration of obligation credit scrips under the Service Exports from India Scheme (SEIS). Henceforth, notwithstanding exception of administration impose, benefit exporters are qualified to get up to 5% obligation credit scrip under the Service Export from India Scheme.


To avail quick and hassle free legal services visit



©2020 CV Legal Tech Services LLP. All Rights Reserved


We're not around right now. But you can send us an email and we'll get back to you, asap.


Log in with your credentials


Forgot your details?

Create Account