EXPORT OF SERVICES RULES, 2005

R.1 Short title and commencement.--

(1) These rules may be called the Export of Services Rules, 2005.
(2) They shall come into force on the 15th day of March, 2005.

R.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.

R.3 1[3. Export of taxable service.-

       (1) Export of taxable services shall, in relation to taxable services.
       (i) specified in 9[sub-clauses (d), (m)] (p), (q), (v), (zzq), (zzza), (zzzb), (zzzc), (zzzh) (zzzr) (zzzy), (zzzz) (zzzza) 13[(zzzza), 16[(zzzzm), (zzzzu), (zzzzv) and (zzzzw)]] of clause (105) of section 65 of the Act, be provision of such services as are provided in relation to an immovable property situated outside India;
       14[(ii) specified in sub-clauses (a), (f), (h), (i), (j), (l), (n), (o), (w), (z), (zb), (zc), (zi), (zj), (zn), (zo), (zq), (zr), (zt), (zu), (zv), (zw), (zz), (zza), (zzc), (zzd), (zzf), (zzg), (zzi), (zzl), (zzm), (zzo), (zzt), (zzv), (zzw), (zzx), (zzy), (zzzd), (zzze), (zzzf), (zzzzg), (zzzzh), (zzzzi), (zzzzk), (zzzzl) and (zzzzo) of clause (105) of section 65 of the Act, be provision of such services as are performed outside India:]
&nb

R.4 Determination of point of taxation in case of 2[change in effective rate of tax] of tax.--

       Notwithstanding anything contained in rule 3, the point of taxation in cases where there is a 2[change in effective rate of tax] of tax in respect of a service, shall be determined in the following manner, namely:-
       (a) in case a taxable service has been provided before the 2[change in effective rate of tax],-
       (i) where the invoice for the same has been issued and the payment received after the 2[change in effective rate of tax], the point of taxation shall be date of payment or issuing of invoice, whichever is earlier; or
       (ii) where the invoice has also been issued prior to 3[change in effective rate of tax] but the payment is received after the 2[change in effective rate of tax], the point of taxation shall be the date of issuing of invoice; or
       (ii

R.5 Payment of tax in cases of new services.--

       Where a service, not being a service covered by rule 6, is taxed for the first time, then,
       (a) no tax shall be payable to the extent the invoice has been issued and the payment received against such invoice before such service became taxable;
       (b) no tax shall be payable if the payment has been received before the service becomes taxable and invoice has been issued within the period referred to in rule 4A of the Service Tax Rules, 1994.

R.6 6[6. Determination of point of taxation in case of continuous supply of service.--

       Notwithstanding anything contained in rules 3,4 or 8, in case of continuous supply of service, the `point of taxation shall be,-
       (a) the time when the invoice for the service provided or to be provided is issued:
       Provided that where the invoice is not issued within fourteen days of the completion of the provision of the service, the point of taxation shall be date of such completion.
       (b) in a case, where the person providing the service, receives a payment before the time specified in clause (a), the time, when he receives such payment, to the extent of such payment.
       Explanation 1. For the purpose of this rule, where the provision of the whole or part of the service is determined periodically on the completion of an event in terms of a contract,

R.7 7[7. Determination of point of taxation in case of specified services or persons.--

       Notwithstanding anything contained in these rules, the point of taxation in respect of,-
       (a) the services covered by sub-rule (1) of rule 3 of Export of Services Rules, 2005;
       (b) the persons required to pay tax as recipients under the rules made in this regard in respect of services notified under sub-section (2) of section 68 of the Finance Act, 1994;
       (c) individuals or proprietary firms or partnership firms providing taxable services referred to in sub-clauses 9[(g)] (p), (q), (s), (t), (u), (za), (zzzzm) of clause (105) of section 65 of the Finance Act, 1994,
       shall be the date on which payment is received or made, as the case may be:
       Provided that in case of services referred to in clause (a), wh

R.8 Determination of point of taxation in case of copyrights, etc.--

In respect of royalties and payments pertaining to copyrights, trademarks, designs or patents, where the whole amount of the consideration for the provision of service is not ascertainable at the time when service was performed, and subsequently the use or the benefit of these services by a person other than the provider gives rise to any payment of consideration, the service shall be treated as having been provided each time when a payment in respect of such use or the benefit is received by the provider in respect thereof, or an invoice is issued by the provider, whichever is earlier.

R.9 8[9. Transitional Provisions.--

       Nothing contained in this sub-rule shall be applicable,-
       (i) where the provision of service is completed; or
       (ii) where invoices are issued prior to the date on which these rules come into force.
       Provided that services for which provision is completed on or before 30th day of June, 2011 or where the invoices are issued upto the 30th day of June, 2011, the point of taxation shall, at the option of the taxpayer, be the date on which the payment is received or made as the case may be.]
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       8. Substituted by the Point of Taxation (Amendment) Rules, 2011 vide Notification No. 25/2011 dated 31.03.2011 w.e.f. 01.04.2011 for the following : -