Sanjay Dwivedi
(Advocate & Consultant)
(143 Points)
Replied 10 May 2007
Dear Sir,
The service rendered by the firm is 'business auxiliary service'. This falls in the third category in Export of Services Rules, 2005 i.e. under Rule 3 (1) (iii). For this category, export is defined as export if the recipient of the service is located outside India.
For this category the place of performance of service is not relevant.
Further, since the service is received and used by A Inc. in a foreign country, it can be said that the service was delivered and used outside India.
Other conditions viz. receipt of payment in convertible currency is also fulfilled.
Therefore, this is certainly export of service.
Thanks,
Sanjay Dwivedi
[My personal views please]