Service tax to NRI for services provided outside India
Requesting for your guidance here.
I am Non-Resident Indian. I have booked tour with Indian tour company and I have requested for their services outside India.
i.e. I am taking their services in London and leaving their services in Rome without touching the ground of India.
I understand, I am NRI and rendering services of Indian company outside India, in such case I am not obliged to pay service tax to indian company.
However I have been asked by tour company to pay service tax of 4.25% stating reason :
Rule 8, (Place of Provision of service)
If Service Provider and Receiver are both from taxable territory then service tax is applicable even though services are provided outside India ."
I understand tour company is following wrong practice of collecting service tax from NRI/Foreigner tourist which is not applicable.
Would request your assistance with actual guideline from Rule book of service tax which can put light that Service tax is not applicable to NRI if services is not rendered in India.