Circular No.ES/39 /2017-18 April 17, 2017
To: Members of the Council
Sub: Seeks to amend Point of Taxation Rules, 2011 with effect from 22nd January, 2017so as to provide the point of taxation of services provided by a foreign shipping line to foreign charterer w.r.t. goods destined for India as the date of bill of lading of goods in the vessel at the port of export.
CBEC has issued Notification No. No. 14/2017-Service Tax dated 13.04.2017 by making amendments in the Point of Taxation Rules, 2011 on the above subject. These rules may be called the Point of Taxation (Amendment) Rules, 2017, and shall come into force on the 22nd day of January, 2017.
In the Point of Taxation Rules, 2011, after rule 8A, the following rule shall be inserted, namely,–
“8B. Determination of point of taxation in case of services provided by a person located in non-taxable territory to a person in non-taxable territory.- Notwithstanding anything contained in these rules, the point of taxation in respect of services provided by a person located in non-taxable territory to a person in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India, shall be the date of bill of lading of such goods in the vessel at the port of export.”.
Members may kindly make note of the same.