7th June, 2005
Notification No. 22/2005-Service Tax
In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services specified in sub-clauses (h), (i), (j), (zn), (zr), (zza), (zzg), (zzi) and (zzl) of clause (105) of section 65 of the Finance Act provided by a non-resident person outside India and consumed outside India, in the course of sailing of a ship which is,-
(a) registered as an Indian ship under the Merchant Shipping Act, 1958 (44 of 1958);
(b) registered under the Coasting Vessels Act, 1838 (19 of 1838);
(c) registered under the Inland Vessels Act, 1917 (1 of 1917); or
(d) chartered and licenced under the Merchant Shipping Act, 1958,
and such ship is owned or chartered, as the case may be, by,-
(i) a citizen of India;
(ii) a company or a body established by or under any Central Act or State Act which has its principal place of business in India; or
(iii) a co-operative society which is registered or deemed to be registered under the Co-operative Societies Act, 1912 (2 of 1912), or any other law relating to co-operative societies for the time being in force in any State,
from the whole of service tax leviable thereon under section 66 of the said Finance Act:
Provided that the said exemption shall apply only in such cases where the said taxable services are provided in relation to,-
(a) handling of ships in a port outside India;
(b) handling or storage of goods carried in a ship in a port outside India; or
(c) any other services related to the handling of ships or goods carried in a ship.
Explanation.- For the purposes of this notification, “non-resident person” means a person, who has established a business or has a fixed establishment from which the service is provided or to be provided, or has his permanent address or usual place of residence, in a country other than India.
2. This notification shall come into force on the 16th day of June, 2005.
[F. No. B1/7/2005-TRU]
Under Secretary to the Government of India