The Central Government has issued a notification amending the Export of Services Rules, 2005 („Export Rules?) in order to classify the taxable services introduced by the Finance (No.2) Act, 2009, as follows –
- Legal Consultancy Services provided in relation to immovable property are classified under the group where export of services is based on the criteria that the immovable property is located outside India.
- Legal Consultancy Services which is not in relation to immovable property shall be classified under the residual category, where the following specific conditions are required to be fulfilled –
– The services are provided in relation to business or commerce; and
– The recipient of the services is located outside India.
- Cosmetic and Plastic Surgery Services and Transportation of Coastal Goods and Goods Transported Through National Waterways and Inland Water Services shall be deemed to be export of services, if such services are wholly or partly performed outside India.
The aforementioned taxable services shall be treated as export of services only if the following common conditions are fulfilled in addition to the specific conditions mentioned above –
- The services are provided from India and used outside India; and
- The payment for such services is received by the service provider in convertible foreign exchange.
The amendment is effective from 23rd September 2009.
___________________________________________________________
Notification No. 38/2009 – Service Tax, Dated: 23rd September 2009
G.S.R. -(E).- In exercise of the powers conferred by section 93 and sub-section (1) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government on being satisfied that it is necessary in the public interest so to do, hereby makes the following rules further to amend the Export of Services Rules, 2005, namely :–
1. (1) These rules may be called the Export of Services (Second Amendment) Rules, 2009.
(2) They shall come into force on the date of their publication in the Gazette of India.
2. In the Export of Services Rules, 2005, in rule 3, in sub-rule (1),-
1. in clause (i), for the brackets, letters and word “(zzzz) and (zzzza)”, the brackets, letters and word “(zzzz), (zzzza), and (zzzzm)” shall be substituted;
2. in clause (ii), for the brackets, letters and word “(zzzzh) and (zzzzi)”, the brackets, letters and word “(zzzzh), (zzzzi), (zzzzk), and (zzzzl)” shall be substituted; and
3. in clause (iii), sub-clause (b), for the brackets, letters and word “(d),(zzzc) and (zzzr)”,the brackets, letters and word “(d),(zzzc),(zzzr) and (zzzzm)” shall be substituted.
[F. No. B1/1/2009-TRU]
