Dear Sir / Madam,
I run a small web design & development company and provide services for companies in the USA alone. My payments are received directly to my bank current account as converted foreign exchange.
I have been advised so far that since the services are rendered outside India, it is not taxable, however, I am eager to reconfirm that the same is not taxable.
Kindly do let me know the rule regarding the same.
Your advise / help would be truly appreaciated.
Regards,
Rajesh
I think it will be taxable because as per rule 3(2)(b) of Export of Service Rules, for treating the service as export of service payment for such service is received by the service provider in convertible foreign exchange.. Wait for experts comment..
get IE code for your export business, and send the invoice in foreign convertible exchange thorugh your banking chanel to avail bank realization of forex, otherwise such remittences does not confirm anything.
CAclubindia
