17 October 2010
Suppose i provide services in relation to immovable property which is located outside India.& i received consideration in Indian currency.
So my question is that whether this will tantamount to Export of Service under service tax export Rule 2005
17 October 2010
It should be noted that according to Export of Service Rules, 2005, Services provided in relation to a immovable property which is located outside india, amount to export of service. However, it is the primary condition that export proceeds should be realised in foreign currency, therefore, in your case,export benefits shall not be available and service tax has to be paid.
17 October 2010
but i have book of author which says that if service is given in respect of immovable property which is situated out of india.it is irrelevant that consideration is received in indian currency to decide whether service is export or Not.
18 October 2010
earlier you said No. can you please give reasoning as you said consideration must be received in Foreign currency.while in this case it is being received in Indian currency only.
18 October 2010
I said 'No' with reference to your view and in my opinion, export proceeds should be realised in foreign currency only, otherwise, it will be taxable in India... You should read bare export of service rules, in which it is clearly mentioned... do not refer any author's book... which you are referring is giving incorrect view...
27 May 2011
If you do not receive consideration in convertible foreign exchange, the criteria of exports of services are not fulfilled. Therefore, it will be treated at par with Indian services and Service tax has to be paid on this.
CAclubindia
