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Judgment
N. Kumar, J.—The question that arises for consideration in this appeal is :
When the service provider is outside the country who has no fixed establishment or permanent address in the country, the service rendered by him inside the country is to be taxed at whose hands?
Prior to 18-4-2006 i.e., amendment to Section 66A of the Finance Act, 1994 (hereinafter referred to as the Act), there was no provision to tax the service receiver, where the service provider was outside the country. The provision to tax for the services rendered under the Act did not apply to a person, who was outside the country. It is in that context, the amendment was brought in, to tax the service receiver, in case the service provider is outside the country. Therefore prior to 18-4-2006, service receiver should not have been taxed for the services provided by an NRI. That is what the Tribunal has found. In the circumstances, the substantial question of law is answered in favour of the assessee and against the Revenue. Appeal stands dismissed.