Export of Services under Service Tax Rules, 2005

A taxable service shall be treated as an export service only if-


(a) the order for provision of such service is made by the recipient of such service from any of his commercial or industrial establishment or any office located outside India;


(b) the service so ordered is delivered outside India and used in business outside India; and


(c) the payment for such service provided is received by the service provider in convertible foreign exchange.


The following services also will be considered as export services:


1) Service provided to an exporter for transport of the said goods by road from any container freight station or inland container depot to the port or airport, as the case may be, from where the goods are exported;

                                               OR

2) Service provided to an exporter in relation to transport of said goods by road directly from their place of removal, to an inland container depot, a container freight station, a port or airport, as the case may be, from where the goods are exported.

- Provided the exporter shall produce the consignment note, by whatever name called, issued in his name.

3) Service provided by a commission agent located outside India and engaged under a contract or agreement or any other document by the exporter in India, to act on behalf of the exporter, to cause sale of goods exported by him.


- provided,

(a)The exporter shall declare the amount of commission paid or payable to the commission agent in the shipping bill or bill of export, as the case may be.


(b) The exemption shall be limited to one per cent of the free on board value of export goods for which that said service has been used.


(c) The exemption shall not be available on the export of canalized item, project export, or export financed under lines of credit extended by Government of India or EXIM Bank, or export made by Indian partner in a company with equity participation in an overseas joint venture or wholly owned subsidiary.


(d) The exporter shall submit with the half yearly return after certification of the same with (i) the original documents showing actual payment of commission to the commission agent; and (ii) a copy of the agreement or contract entered into between the commission agent located outside India and the exporter in relation to sale of export goods, outside India: