SUB: Extension of service tax to designated areas in

                            The Continental Shelf and Exclusive Economic Zone

                             Of India - clarification - reg.

***

                  A copy of Ministry of Finance, Department of Revenue, Central Board of Excise & Customs, Service Tax Circular No.36/4/2001 dated 8.10.2001 is communicated for information, guidance and necessary action.

(issued from file C.NO.IV/16/304/2001-S.TAX)

Sd/----

(V.M.BASHEER AHMED)

ASSISTANT COMMISSIONER

CHENNAI-III

To

As per Mailing list

I am directed to say that question has arisen whether services provided outside the limits of the Indian territorial waters are liable to service tax or not.

The matter has been examined. At present the levy of service tax extends to the whole of India except the state of Jammu and Kashmir. The expression "India" includes the territorial waters of India. Indian territorial waters extend upto twelve nautical miles from the Indian landmass. Chapter V of the Finance Act which governs the levy of service tax has not extended the levy to designated areas in the Continental shelf and the Exclusive Economic Zone of India (as has been done in case of central excise vide Notfn.no.166/87-CE Dated 11.6.87 and in case of Customs by Notfn.no.11/87-Cus. Dated 14.1.87 and 64/97-Cus Dated.1.12.97). It is, therefore, clarified that the services provided beyond the territorial waters of India are not liable to service tax as provisions of service tax have not been extended to such areas so far.

Sd/-

(S.C.BHATIA)

Under Secretary to the Govt.of India