Export of services - payment by nre account

Hello Everyone,

I have a query regarding export of services when payment is made through NRE Account.

Case:

My client(Service Receiver) is located ouside India and Service Provider is located in India. The services are received and utilised outside India. The problem lies that the Service Receiver Company wants to make the payment through NRE Account of the president to the service provider company located in India. The company will make an agreement with the president and show in the books of account that it had taken loan from president.

My question is that after making payment from NRE account will the transaction be eligible for exemption?

Replies (2)

no service tax

If you are showing it as a loan, then question of service tax does not arise at all because it is not an income but a loan.

Moreover, you need to comply provisions of Companies Act 2013 regarding availment of Loan by Company.[Section 179, i think]

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details