Income from service out of india

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This discussion clarifies the tax implications for services rendered in India but paid for by clients abroad. Even if funds are received from overseas, if the core service is performed within India, it's generally not treated as an export of services. Consequently, GST at 18% is likely applicable to such transactions, including any client expenses covered by the payment.

binu sukumaran

binu sukumaran (Querist)

09 February 2022 Sir.
One of my client doing HR consultant service.
During Jan22 they received 25 lakhs fund from Dubai in
connection with HR service.

This amount included hotel and traveling of client.

My doubts
1. Fund received from outside India can treat as export.
2. Whether any GST need to pay this transaction .
3. This is purely service so no proof of export..

Please advise

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 February 2022 Service is rendered from India or rendered outside India by traveling to outside India.

binu sukumaran

binu sukumaran (Querist)

10 February 2022 sir.
service is rendered in India .HR Recruitment and other visa process is done in India .
There main core area of business is supply human resources outside india .
fund transfer 25 lakhs include hotel rent & visa process exp of client also
Please advise
With Regards
Binu

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 February 2022 1 This will be considered as intermediary services and will not be considered as export of service.
2 18% GST applicable on this transaction.

binu sukumaran

binu sukumaran (Querist)

10 February 2022 This for the information.
For clarification, fund received from Dubai to Cochin in dollar and converted in to Rs.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 February 2022 Even then it will not fall under export, as service is rendered in India .HR Recruitment and other visa process is done in India .

binu sukumaran

binu sukumaran (Querist)

10 February 2022 Thanks you so much for your fast reply and help other people in difficult situation in accounts.
God bless you.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 February 2022 You are welcome........