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Export of service-payment receipt in indian rupees
My friend-software engineer (Service provider) is providing consultancy service to Company situated in USA (Service receiver). He receives payment through mediator company via NEFT mode in his bank account in Indian Rupees. All the conditions for qualifying export service are satisfied except "Payment must be received in Convertible Foreign exchange". Mediator company is also situated in USA. It doesn't provide any FIRC or other document. So whether this service qualify for export service ?
Replies (3)
FIRC is provided by the bank not by the mediator. Realisation in FC is a must for qualifying as service export.
Yes. I know that FIRC is issued by bank. But in this case SP is receiving amount in indian rupees via mediator. Also note that mediator too located out of india. This mediators receive amount through USA company(SR). Then mediator pays off to SP. Mediator gets exchange rate benefits. But the main contract to provide service is between SP(india) and SR (USA) only.
if the billing is done on the party, amount also should be realised from them, not frm mediator. Mere residency status doesnt count for export or realisation in FC.
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