Indian agent, Facilitating transfer of money from abroad to person situated in India, provides services to service receiver outside India though the beneficiary of services is in India.

Wall street Finance Ltd Vs. Commissioner of Service Tax Mumbai. [2015] 37 STR 642 ( Tri- Mumbai )

 

FACTS :                                                           

The appellant was engaged by M/s. Western Union as   agent for transfer of money from abroad to persons situated in India. The Department was of the view that since service were rendered in India service tax was payable on the commission received.

It was contended that the nature of service undertaken was transfer of money from abroad for the remitters situated abroad though Western Union who provided the money transfer services. As far as usage of service was concerned service were provided to western Union, who was situated abroad and therefore services were used outside India. The Consideration was also received in convertible foreign exchange Hence all conditions for classifying the said service as export of service were satisfied.

HELD :

At the relevant time there were no specific rules to determine the place of provision of service under the service tax Law. Rule 3 provided that the place of such provision of such service shall be the place of recipient of service. In the present case, since the recipient was M/s. Western Union who was located outside India Services were export services not taxable in India.