Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Confusion about export sale

256 views

Save Share

Chitralekha Gawde

21 Points Posted on 24 September 2021

our company is selling an ios app outside India.
Our customer is the subscriber

Subscriber pay the subscripttion amount in foreign currency ,then apple reduces its service charges from the same and then the net foreign currency is converted in INR by apple and then apple credits the INR amount to our account .

we are not able to understand whether this is an export or a domestic sale

As for export
Place of supply should be outside india -This is yes
Receipeint should be outside India - This is yes
Amount should be received in foreign currency- this we are getting in INR to our account

can anyone help us in understanding this?

Replies (2)

Quick Summary

A company selling an iOS app abroad is confused about whether their sales constitute an export or a domestic sale. The process involves foreign subscribers paying in foreign currency, Apple deducting service charges, converting the net amount to INR, and then crediting the INR to the company's account. The core confusion lies in whether receiving the final amount in INR negates the export status, despite the supply and recipient being outside India.

shobha m

articale student

84 Points Posted on 24 September 2021

Amount only received by third party

Rajendra Prasad

Employee Private

1142 Points Posted on 24 September 2021

In my view, apple is receiving foreign money on behalf your app and reducing their amount and crediting you in INR based on the conversion calculation. It is deemed to be foreign currency receipt by you.