Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
07 February 2014These days it has become a popular means to receive export proceeds in India through intermediaries like Paypal etc who would receive the FCs from foreign service recipient through international banking channels and then send INR to bank account of indian service provider.
Does this comply with the conditions set out in Rule 6A(e) of Service Tax Rules 1994 as amended till date so as to classify as Export of service and hence outside the service tax net.
Sincerely,
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 18 February 2014
May I ask the members to share their views please.
Thanks,
Vikas
(CA)
(1135 Points)
Replied 18 February 2014
Dear Dipjyoti,
There are case laws such National Engineering, Nipuna Services, etc. wherein it has been held that if the amount has been realized by the agent of the Indian service provider, then it shall be assumed that the condition for realizing the amount in foreign currency has been met.
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