APEX COURT TURNS DOWN GOVT. PLEA OVER SERVICE TAX ON SHIPOWNERS

The Supreme Court held that services received by vessels and ships outside India prior to April 18, 2006, from persons who are not residents of India or are outside India cannot be taxed. In view of Section 66A, offshore services cannot be subject to service tax prior to April 18, 2006, the high court said, adding that before enactment of Section 66A, there was no authority vested by law in the revenue to levy service tax on a person who was resident in India and received services outside India.