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Export of services

sandhya (ca) (92 Points)

06 July 2012

Dear users

if the sale of software is made to subsidiary of a foreign company which is in India is it an export?
the remittance is receivable in convertible foreign currency
the billing is made on foreign company

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6 Replies

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 06 July 2012

Please clarify in what perspective you are asking? Whether the service is in relation to customized software.

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sandhya (ca) (92 Points)
Replied 06 July 2012

this is a non customised software

sandhya (ca) (92 Points)
Replied 06 July 2012

but cutomed or not the point hereis if the beneficiary is resident in india then it is not an export.

any thing contrary?

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 06 July 2012

Then service tax will not be imposed on the same as it is considered as goods and off the shelf packed software not liable to service tax.

sandhya (ca) (92 Points)
Replied 06 July 2012

no you have got it wrong I only wanted to know if it was export or not ?

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Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 06 July 2012

Export as per the Customs Act means when the goods have crossed the customs frontier of one country and has entered another country. How come the question of Export arises, when the material has not moved outside India or any other country as the case may be.