This PPT talks about the services rendered outside the Territorial waters and the Service Tax applicability on the same. Under the International Law, recent developments have shown that the territory of a country, for exercising their jurisdictional rights and internal laws, has been extended to the Continental shelf and the Exclusive Economic Zones. But the rights given to the coastal country are limited and restricted. When compared with the previous notification passed by the Central Government, now the service tax will be charged irrespective of the area being designated or non-designated in the EEZ and the Continental shelf. This paper will analyse the implementations of the new amended notification. It will also compare the new notification with the other notifications of the Customs & Excise Act and Income Tax Act for drawing an extent of the applicability of the act to the territory of India, whether or not Service Tax can be charged for an area outside the territorial waters.

1. Presentation on Services rendered outside Territorial waters: Applicability of Service Tax Law on the modified Territory Akshata Srinath, 4 th Year, School of Law, Christ University Bangalore. Mentor- Ms. Amudha, Lakshmi Kumaran and Sridharan, Delhi

6. Diagram

10. Implications of the Notification

19. Service Tax Pre/Post Budget Next Taxable on a reverse charge basis in case of ‘installations, structures and vessels’ ’ Not taxable Outside India Non-designated coordinates Taxable in the hands of service provider in case of ‘installations, structures and vessels’ Not taxable Within India Non-designated coordinates Taxable on a reverse charge basis in case of ‘installations, structures and vessels’ Taxable on a reverse charge basis Outside India Designated coordinates Taxable in the hands of service provider in case of ‘installations, structures and vessels’ Taxable in the hands of service provider Within India Designated coordinates Post-Budget period Pre-Budget period Location of service provider Place of performance of service

22. Nothing is certain but death and Tax -Benjamin Franklin

32. Facts of the case Coen Company (non resident), California, USA M/S JPOCL’s Air Seperation Plant Contract letter dated 11-7-1997 For design, detailed engineering and preparation of specifications Not registered under Service Tax “ Consulting Engineer”- § 65

34. Facts of the case Indian Land Territory Mc Dermott Int. Inc. (non- resident) EEZ and Continental Shelf Territorial waters Contract works for Bombay High offshore oil rigs Section 5(2) and Section 44BB of the Income Tax Act Activities and the Services in connection to Activities

36. Facts of the case Oil rig Exclusive Economic Zone of India Pride Pensylvania- Drilling Machine Pride Foramer- Registered office in France; Branch office in Mumbai Contractor to ONGC Importing Goods required for the use of oil rig not directly 1 st Mumbai port, then transshipped Section 87- without the payment of duty {Payable § 12, Exempted § 53 § 54- Imports for transshipment ? Foreign Going vessel

38. Facts of the case M/s Intas Pharmaceuticals Ltd. Manufacture of Pharmaceutical Products claimed refund of Rs. 55, 702 Not liable to pay service tax on technical testing and analysis services Services fully performed outside India

41. A Snap Shot Exports and Imports with Service Tax Back Territorial Boundary Services provided from India Services provided from outside India Used in India Received in India Import of Services Not Taxable Taxable Used in Outside India Used outside India Export of Services India Outside India