XYZ Ltd., an Indian company, provides a taxable service to its other establishment in USA. Can the services provided by an establishment of a person in a taxable territory to another establishment of the same person in a

No, even though such persons have been specified as distinct person under explanation 3 to Section 65B (44), yet the transaction between such establishments have not been recognised as export of service in terms of Rule 6A (I) (f) of the Service Tax Rules, 1994. As a consequence, there cannot be any export of service between XYZ Ltd., and its other establishment in USA. Exports are not eligible for tax benefit where the exporter is entitled to claim rebate of duties and taxes paid on inputs or input services used in exported service. Further, in case of service provided to the overseas establishment of the same person, benefit of CENVAT credit is denied.