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2017 (10) TMI 850 - AT - Service TaxLevy of tax - commission earned by arranging charter of vessels operated by their clients overseas - non-receipt of the consideration in convertible foreign exchange - proviso to section 73(1) of Finance Act, 1994 - Export of Service Rules, 2005 - Held that: - there is no dispute that the recipients of the service provided by assessee are located outside the country. However, the bar to extending the eligibility for exemption under Export of Service Rules, 2005 is the rendering of services in India and the receipt of commission in Indian currency - it cannot be held that the activity of the assessee in promoting the interests of its clients in relation to the contracts between their clients and the Indian entities has been performed within India. Whether the consideration has been received in foreign currency as claimed by the assessee? - Held that: - it is only after 18th April 2006 that receipt of foreign currency was explicitly included as a condition in Export of Service Rules, 2005. Accordingly, any levy pertaining to the period prior to that would not sustain. Having exported services, the assessee is not liable to tax - appeal allowed - decided in favor of appellant.
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