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FIRC mandatory for proving export of services ?

11 June 2021

Is FIRC mandatory for proving export of services ? I will be filing for LUT in few days. Is bank statement showing reception of usd enough proof ? Thanks :)

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14 Replies

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 11 June 2021

FIRC is mandatory to claim refund of accumulated ITC or GST paid as the case maybe

Christine Diaz (132 Points)
Replied 11 June 2021

Originally posted by : CA Altamush Zafar
	FIRC is mandatory to claim refund of accumulated ITC or GST paid as the case maybe

Thanks sir. I will be filing LUT in few days -- and will not be paying gst at all. In that case, is it still necessary ? Is showing bank statement that receives usd enough proof ?

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 11 June 2021

As far as export is concerned. It is good enough but you can ask your bank for FIRC, there is no issue on that either. At the most the bank will ask for your service code (Code as per RBI)

Christine Diaz (132 Points)
Replied 11 June 2021

Originally posted by : CA Altamush Zafar
	As far as export is concerned. It is good enough but you can ask your bank for FIRC, there is no issue on that either. At the most the bank will ask for your service code (Code as per RBI)

I have read many places that banks are only giving FIRCs for FDI and FII. So what if bank refuses to give FIRC?

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 11 June 2021

No that's not the case. I had a client and he was giving digital marketing service to their customer in US. The bank was giving FIRC

Christine Diaz (132 Points)
Replied 11 June 2021

Originally posted by : CA Altamush Zafar
	No that's not the case. I had a client and he was giving digital marketing service to their customer in US. The bank was giving FIRC

Thanks sir :)

one more q :::

I have just given share capital to opc. I am only shareholder. Can that be claimed as expense during personal tax filing ?

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 11 June 2021

That is not an expense. It is your investment in personal capacity

Christine Diaz (132 Points)
Replied 11 June 2021

Originally posted by : CA Altamush Zafar
	That is not an expense. It is your investment in personal capacity

Thanks sir :)

So, i guess it is income for opc? So, opc should create receipt and keep it in its books? No need to give it to shareholder since it cannot be claimed as expense.

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 11 June 2021

For OPC it is capital will be shown as liability

Christine Diaz (132 Points)
Replied 11 June 2021

Originally posted by : CA Altamush Zafar
	For OPC it is capital will be shown as liability

Sir, for director salary, should director send an invoice to opc? Or is just receipt enough ? Thanks :)

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 11 June 2021

If director is an employee then no invoice required. If director is not a employee then the company will have to pay GST on it on RCM.

If you are giving salary most probably he will be an employee therefore no invoice required

Christine Diaz (132 Points)
Replied 11 June 2021

Originally posted by : CA Altamush Zafar
	If director is an employee then no invoice required. If director is not a employee then the company will have to pay GST on it on RCM. If you are giving salary most probably he will be an employee therefore no invoice required

But a receipt has to be given to opc, right, sir? -- so that it can be claimed as an expense ?

Christine Diaz (132 Points)
Replied 11 June 2021

Originally posted by : CA Altamush Zafar
	If director is an employee then no invoice required. If director is not a employee then the company will have to pay GST on it on RCM. If you are giving salary most probably he will be an employee therefore no invoice required

But a receipt has to be given to opc, right, sir? -- so that it can be claimed as an expense ?