Billing to local customer in inr and receive payment from abroad in usd

This query is : Resolved

lokananda (Querist)
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22 October 2015 Dear all Please clarify my following quires 1) we have billed to local customer in india in Inr and charged service tax on that now cstomer insiting us to take a payment from his parent company in USA, party is ready to make payment in USD - please let me know is it permisabele transction under RBI/FEMA Please also let me know viewsbon other laws if any and if yoi provide full deatails will helpfull to me Thanks Lokananda

CA G. SURYANARAYANAN

CA G. SURYANARAYANAN (Expert)
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22 October 2015 Sir, require the following details
1. Beneficiary of service - indian coy / frgn coy

2. Nature of service to analyse the permissibility or otherwise under fema and also tds

3. Relationship between Indian entity / frgn entity? Holding etc

Please furnish the above details.

lokananda

lokananda (Querist)
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01 November 2015 sir servicea is software development and it was directly provided to US server and billed to indian party becuse we received and signed master service agreement with indian party from april to july 15 indian party paid us and also deducted TDS and from aug he is asking us to collect payment from US but we billed to india and not paid from aug

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lokananda

lokananda (Querist)
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01 November 2015 till aug the temporyr server was a channai and we delvered services via chennai server but from aug it is direct US server india is subsudiary and us is paernt compny and we dont have any relationship we have stpi registered user also please tell me the implication based on FEMA, STPI, SERVICE TAX angele