Services received by Indian companies or individuals abroad will no longer attract service tax.
In addition to this, services received by individuals from abroad for non-business purposes will also not come under the purview of the tax.
Individuals, for instance, using consultancy services of an architect from overseas for construction of their homes will no longer require to pay of 12 per cent service tax.
The revenue department on Wednesday withdrew two notificationsone dealing with exemption for the shipping industry for services received outside India and a second dealing with imposition of service tax on services received by individuals from abroad for non-business purposes.
The provision governing service tax on services received from outside has been included in Section 66A which states that services received by individuals other than for the purpose of use in business or commerce are not chargeable to service tax.
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