14 December 2010
If export proceeds are received in Indian currency, no export benefits shall be available. [Ref. Rule 3(2)(b) of Export of Service Rules, 2005].
If services are rendered in India, it shall not be treated as export, even if it is rendered to any foreign national and he pays in convertible foreign currency. [Ref. Rule 3(2)(a) of Export of Service Rules, 2005].
also attn sridhar G, As per Rule 3(2)(a) of the Export of Services Rules 2005, a taxable service shall be treated as export of service if such service is ‘provided from India and used outside India’. [ Please Refer : Rule 3(2) of Export of Service Rules, 2005. ]
If export proceeds are received in Indian currency, no export benefits shall be available.
we will get our sale proceeds in dollors only not in INR, please suggest can we eligible for service tax Exemption, if it's yes Please forward me the notification
15 December 2010
Sridharji, if any one of the following condition has been satisfied , then it will be treated as export service. So please confirm.
The Export of Services, Rules, 2005 specifies 3 categories of cross border transaction of services and conditions that will be construed as export of services in cases of: i. Specified services which are provided in relation to immovable properties situated outside India – [See list of services in Appendix-4] (Refer Rule 3(1)(i) of Export of Service Rules,2005). ii. Specified services which are partly performed outside India – [See list of services in Appendix – 4] (Ref. Rule 3(1)(ii) of Export of Service Rules,2005). iii. the remaining taxable services, barring a few exceptions, when provided in relation to business or commerce, to a recipient located outside India, and when such services are provided not in relation to business or commerce, it should be provided to a recipient located outside India at the time of provision of such service. However, where such recipient has commercial establishment or any office relating thereto, in India, such taxable services provided shall be treated as export of service only when order for provision of such service is made from any of his commercial establishment or office located outside India. [See list of services in Appendix – 4] (Ref. Rule 3(I)(iii) of Export of Service Rules,2005). Further condition to be met for treating the provision of any taxable service as export of service - payment for such service is received by the service provider in convertible foreign exchange. [Ref. Rule 3(2) of the Export of Service Rules, 2005].
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