Courtesy: CA Kapil Gokharu

 

There is no need to pay the Service Tax on the services which are rendered outside India except Online information and database access or retrieval services which will be taxed in India.  If you have paid any Excise Duty or Service tax for rendering the Export Services that you can also claim refund. Detailed information is given below.

 

For the export of service following conditions needs to be satisfied:

1. The service provider is located in Taxable territory

2. Service recipient is located outside India

3  Service provided is a service other than in the negative list

4 The place of provision of the service is outside India which is our case is already outside india

5 The payment is received in convertible foreign exchange

 

What are “Online information and database access or retrieval services”?

“Online information and database access or retrieval services” are services in relation to online information and database access or retrieval or both, in electronic form through computer network, in any manner. Thus, these services are essentially delivered over the internet or an electronic network which relies on the internet or similar network for their provision. The other important feature of these services is that they are completely automated, and require minimal human intervention."

 

Examples of such services are:-

i) Online information generated automatically by software from specific data input by the customer, such as web-based services providing trade statistics, legal and financial data, matrimonial services, social networking sites.

ii) Digitized content of books and other electronic publications, subscription of online newspapers and journals, online news, flight information and weather reports.

iii) Web-based services providing access or download of digital content.

 

The following services will not be treated as “online information and database access or retrieval services'':-

i) Sale or purchase of goods, articles etc over the internet.

ii) Telecommunication services provided over the internet, including fax, telephony, audio conferencing, and videoconferencing.

iii) A service which is rendered over the internet, such as an architectural drawing, or management consultancy through e-mail.

iv) Repair of software, or of hardware, through the internet, from a remote location.

v) Internet backbone services and internet access services.