Foreign currency received in inr

Your query doesn’t seem to be clear. Are you saying that in the absence of an FIRC how you substantiate to the Department that you have received the amount in foreign convertible exchange.

As per Service tax law, there is no such condition to have an FIRC. But only if you are able to prove that you have received the consideration in foreign convertible currency, then only your services could be considered as export services.

There are judgements, wherein the company received amount in INR, but its agent received the amount in foreign currency; even then the services were considered as export, as the ultimately Indian government did receive the consideration in convertible foreign exchange.

In your case, please check whether the amounts were transferred in foreign currency to Indian counterpart banks. If yes, then may stand a chance.

I have received a NEFT in my account by my overseas client confirms that they transfered in Foreign currency only. I am still chasing up with the bank to get the details of the intermediary bank. If at all i am not able to prove will i be liable to pay a service tax on the same?
 

No.

The services provided by you are covered under Rule 3 of the Place of Provision of Services Rules, 2012. Meaning, the place of provision of for your services would be based on the location of service recipient.

Please note that if the place of provision is outside India, no service tax is payable on such services.

Therefore, in your case, you would not be liable to service tax, even if you don’t receive the amount in foreign currency.

Further, you must also note that if you don’t receive the amount in foreign currency then you will be denied to claim Cenvat credit for claiming refund. Therefore, for claiming refund, you must receive the amount in foreign currency.

As you stated the amount has been received in foreign currency, you satisfy the condition, irrespective of the fact that you don’t have an FIRC. But you must collate for the documents proving that you have received the amount in foreign currency, like certificate from bank stating that you have received the amount in foreign currency (not FIRC), any other document proving the same, etc.

So, don’t worry, just compile the documents.