import of services taxable under service tax only wef 18.4.2006 - CBEC finally agrees !!

The long standing dispute between Service Tax Department and tax payers regarding the

date from which the import of services were taxable is now finally settled.

Now CBEC has finally clarified that services provided by non- residents or persons located outside India to a recipient in India is taxable only with effect from 18.04.2006.It is thus, settled now that in such cases, service tax liability would arise w.e.f. 18.4.2006, ,i.e, date of enactment of section 66A of Finance Act, 1994.

CBEC took such a step because the appeals filed by Union of India got dismissed by SC