anybody can please tell whether the proceeds of export of service need to be received in foreign currency itself or a fund transfer from foreign bank of client received in rupees is sufficient to claim exemption?
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Export of service
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Dear Sudarsan,
Why this confusion?
Foreign curency in physical form or through Bank transfer is a foreign currency. Are you confused with the definition of "currency" as given in FEMA or earlier FERA??????
Obviously both the above route qualify for exemption; subject to other conditions stated in Service Tax.
In fact between two, Bank transfer is easier to be proved at the time of assessment service tax case.
Proceeds should be demanded in Indian currency so that you may claim all exemptions as are available to you properly.
Dear Friend,
You have to supply info reg.nature of export on which you would seek exemption.
Besides, you are free to receive your dues against export deals in shape of foreign currency or INR , however such receipt becomes exigible to Indian Income tax when received in India or credited to your bank account held in the name of a Exporter or establishment having principal place of business in India.
The bill should be in indial rupee and in foreign currency both.
The amount should be transferred from Foreign Bank to Indian Bank or any other legal way.
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