Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

Export of services

665 views 2 replies

Ritesh Jain

CA CS in Job

675 Points Posted on 12 May 2010

Kindly clarify whether below mentioned case involves export of services on part of indian contractor.

Govt of India enter contract with Govt of X country for certain work(involving services).

Govt of India sub contracts that work in a consortium of 5-6 indian subcontractor under a seperate agreement.

Payment to subcontractor to be made by Govt of India but in forex.Subcontractor has nothing to do with the contract betwwen GOI and GOX.

Services to be provided by subcontractor in country of X.

Now the question is whether the services provided by subcontractor will be treated as export of services.

Replies (2)

Deepak

Student

127 Points Posted on 12 May 2010

As per as My knowledge goes, the service should be regarded as Export of service as the service is provided in country X, & ur receiving the money in forex.

But one should be keep in mind, whether the service is covered under Export of service Rules 2005 ( Nature of Service).

Hope i'd helped you!

similar query raised by me, please try that too, it would be very helpful to me!

Ritesh Jain

CA CS in Job

675 Points Posted on 13 May 2010

Thanx Deepak for replying,

Yes the services are covered and my query is emphasised on that the Indian subcontractor has contract with indian govt and nowhere foreign party is involved, only the place of rendering service is outside india.