In exercise of the powers conferred by sections 93 and 94, read with section
66A of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes
the following rules, namely:-
1. Short title and commencement.– (1) These rules may be called the Taxation of
Services (Provided from Outside India and Received in India) Rules, 2006.
(2) They shall come into force on the date of their publication in the Official
Gazette.
2. Definitions.– In these rules, unless the context otherwise requires–
(a) “Act” means the Finance Act, 1994 (32 of 1994);
(b) “input” shall have the meaning assigned to it in clause (k) of rule 2 of the
CENVAT Credit Rules, 2004;
(c) “input service” shall have the meaning assigned to it in clause (l) of rule
2 of the CENVAT Credit Rules, 2004;
(d) “output service” shall have the meaning assigned to it in clause (p) of rule
2 of the CENVAT Credit Rules, 2004;
(e) “India” includes the designated areas in the Continental Shelf and Exclusive
Economic Zone of India as declared by the notifications of the Government of
India in the Ministry of External Affairs numbers S.O.429 (E), dated the 18th
July, 1986 and S.O.643(E), dated the 19th September 1996;
(f) words and expressions used in these rules and not defined, but defined in
the Act shall have the meanings respectively assigned to them in the Act.
3. Taxable services provided from outside India and received in India.– Subject
to section 66A of the Act, the taxable services provided from outside India and
received in India shall, in relation to taxable services–
(i) specified in sub-clauses (d), (p), (q), (v), (zzq), (zzza), (zzzb), (zzzc),
(zzzh) and (zzzr) of clause (105) of section 65 of the Act, be such services as
are provided or to be provided in relation to an immovable property situated in
India;
(ii) specified in sub-clauses (a), (f), (h),(i), (j), (l), (m), (n), (o), (s),
(t), (u), (w), (x), (y), (z), (zb), (zc), (zi), (zj), (zn), (zo), (zq), (zr), (zt),
(zu), (zv), (zw), (zza), (zzc), (zzd), (zzf), (zzg), (zzh), (zzi), (zzl), (zzm),
(zzn), (zzo), (zzp), (zzs), (zzt), (zzv), (zzw), (zzx), (zzy), (zzzd), (zzze), (zzzf),
and (zzzp) of clause (105) of section 65 of the Act, be such services as are
performed in India:
Provided that where such taxable service is partly performed in India, it shall
be treated as performed in India and the value of such taxable service shall be
determined under section 67 of the Act and the rules made thereunder;
(iii) specified in clause (105) of section 65 of the Act, but excluding–
(a) sub-clauses (zzzo) and (zzzv);
(b) those specified in clause (i) of this rule except when the provision of
taxable services specified in clauses (d), (zzzc), and (zzzr) does not relate to
immovable property; and
(c) those specified in clause (ii) of this rule, be such services as are
received by a recipient located in India for use in relation to business or
commerce.
4. Registration and payment of service tax.– The recipient of taxable services
provided from outside India and received in India shall make an application for
registration and for this purpose, the provisions of section 69 of the Act and
the rules made thereunder shall apply.
5. Taxable services not to be treated as output services.– The taxable services
provided from outside India and received in India shall not be treated as output
services for the purpose of availing credit of duty of excise paid on any input
or service tax paid on any input services under CENVAT Credit Rules, 2004.
[this page last updated on 20.5.2007]
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