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Netting off of payments


30 January 2013 Respected Sir

Good Day.

I need your opinion and guidance on one issue:

In our company we have to receive export receivables and make import payments . Can we net off payments and make balance payment to same party in foreign currency? If we net off the overseas payables with receivables, whether service tax liability will arise in such case for the transaction we are treating as exports according to export rules?

Kindly advise.

31 January 2013 Yes netting of payments can be done subject to conditions prescribed in circular 47 of 2011 of RBI.

Anuj
femaquery@gmail.com

31 January 2013 But will it be valid in export rules of service tax?




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