Service tax on export of software if not relaised

A service is said to be exported only if the consideration is received in convertible foreign exchange within the specified time. If the foreign currency is not received, then it is not exported and it should be treated as provided domestically and attracts service tax with interest.

Thanks Sharma sir. Can u please quote the relevant section for your explanation since i need to prepare a report on this. I searched for the same but couldnt trace it. Expecting your reply ASAP.

Thanks in advance.

Dear Divya

There was a major change in rule 7 of POT rules in the last budet , Export of service is now governed by rule 6A of service tax rule 1994  and if you carefully read that there are 7 conditions to be satisfied to clasify a service as export service and collection of foriegn currency with in specified period does not appear to be a pre condition. though the same was part rule 7  in earler POT rule   and the same is not specified even in POT rule 7. Payment foreign currency with 6 months for import of service is still available in rule 7 of POT.