Service Tax extends to the Continental Shelf & Exclusive Economic Zone (CS & EEZ) of India [Notification No. 14/2010-S.T., dated 27-2-2010]
Eg: A Vessel sailing from Karachi to Colombo developed some technical snag while passing through CSI (Continental Shelf of India) off Kochi port. A marine engineer from Ernakulam provides service to the vessel anchored in the EEZI (Exclusive Economic Zone of India).
Sol: No tax ! Why? Because, the vessel located in the CSI / EEZI, is not engaged in the mineral exploitation.
Eg #2: Installation in EEZI meant for prospecting for mineral oil, did not find out oil. Is tax payable on service provided to such an installation?
Sol: Tax is payable ! Why? Because, installation was for the purposes of prospecting mineral oil. It does not matter whether oil was found or not.