Cross-border services- Prior to 18-4-2006 services rendered by a non-resident service provider to a resident recipient could not be taxed as a service at the hands of resident recipient

In fact, the Bombay High Court in Indian National Shipowners Association v. Union of India [2009] 19 STT 408 (Bom.) has more than adequately dealt with the entire issue and inter alia concluded that it is only after enactment of section 66A that taxable services received from abroad by a person belonging to India are taxed in the hands of the Indian residents; before enactment of section 66A, there was no such provision in the Act and therefore, the respondents had no authority to levy service tax on the members of the petitioners-association.

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