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.
Thanks for sharing your info. I really appreciate your efforts and I will be waiting for your further write ups thanks once again.
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