75th Founding Day Lecture Meeting on “India@2030” Know More

July 2011

Circular No. 141/10/2011-ST-TRU, dated 13-5-2011.

By Tarun Ghia, Brijesh Cholera, Pratik Mehta
Chartered Accountants
Reading Time 1 mins
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The CBEC in relation to the expression ‘used outside India’ in Rule 3(2)(a) of the export rules as prevalent prior to 28-2-2010 has clarified that:

(i) The words should be interpreted to mean that ‘the benefit of the service should accrue outside India’;

(ii) The words ‘accrual of benefit’ is not restricted to mere impact on the bottomline of the person who pays for the services;

(iii) The above interpretations should not apply to services which are merely performed from India and where the accrual of benefit and their use outside India are not in conflict with each other. The relation between the parties may also be relevant in certain circumstances.

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