Export of Services

Export of services means

• The supplier is in India
• Recipient is outside India
• Place of supply is outside India.
• Supplier and recipient are outside India
• Currency should have been received in convertible foreign currency.

Today, the world is global. India acts as a global hub serving MNCs. As the saying goes, "Think locally, act globally." The world today has no geographical boundaries. In the post-covid era, a lot of outsourcing, be it accounting, auditing, or finance, is outsourced from outside countries to India. This is predominantly from US and European countries. The world of consulting is booming like anything. Let us analyse the export of services in two segments.

• Foreign language
• Foreign course

Foreign language

The committee of exports of ICAI has made ties with various foreign institutions for languages. In the post-covid era, all the institutions mentioned above started to promote online classes. If we analyze the top foreign languages across the globe, they are Spanish, German, French, Japanese, and Korean. Learning a foreign language with a basic spoken and written reading of a document is of paramount importance. Today, as there is high global mobility, a lot of multinational companies ("MNCs") have established a presence in India; knowing a foreign language can add huge value.

It helps in conversing with the clients. It will be useful, as now translation services can be rendered. The example says a consulting firm does consultancy work; it wants to render, say, permanent establishment tax implications for a German-based MNC. In a country like Germany, German is the language spoken. Therefore, even though advisory services are rendered from India, the German translation service can still be rendered for the same assignment or for a new assignment. Here the client gets value addition. The advisory/consulting unit gets a brand to its tag and becomes a complete business solution provider. Likewise, apart from traditional tax services, foreign language services can be rendered which offers brand value to the client.rendered,

Foreign languages can be learned through foreign institutes (recognized bodies like the Alliance Française franchise) or through coaching institutes that teach foreign languages. Some app has come but is not recommended. Post that can pass the A1 level exam conducted by institutes. This adds a brand.

Any one foreign language can be learned, which gives value added, for English cannot be compromised. Above all, I am even patriotic towards my mother tongue and also Hindi (the national language). At the office, English is being spoken, sometimes vernacular language some cases, Hindi. At home, the language and in mother tongue is spoken, so in a nutshell, it can be like creole. Creole can be a mix of all languages; it is spoken widely in Mauritius and also in some parts of Nagaland.

Foreign course

Today accounting is global. Tax is global, with US taxation becoming popular. There are many foreign courses, like CISA (certified information system auditor), CFA (chartered financial analyst), and many others. Among all, CPA (USA) is now high in demand. Although CA is from India, CPA (USA) adds a brand and a well-organized course. Above all, from a global perspective and from high-end advisory services, CPA (USA)a well-sought global course to a brand.

Above all, the course is much sought after by accounting professionals. The exams are conducted in India with prometric centers in India. The course is fantastic; a lot of doors are opening in India. In the much sought-after post-Covid era, a lot of MNCs are hiring CPA-qualified people, even large consulting firms. The CPA course, in a nutshell, can be completed for 4 lakhs Rs. CPA is now becoming more popular and more branded than Indian CA. Whether CA (India) or CPA (USA). The answer is with both. The CA from India is a great brand in India, but CPA (USA) means a global career and high employment mobility. By doing CPA, Indian CAs can do advisory taxation services and also US tax-related work. They called us brand ambassadors in the accounting profession and called global business solution providers.

Conclusion

• Export of service through the import/export code has now become popular.
• Foreign language services can be exported, and also a lot of accounting services can be exported.
• In the GST law, if a letter of undertaking is obtained for the same, then there is no need to charge IGST.