Friends/Experts
One of the conditions to satisfy a provision of service as export was that payment should be made in convertible foreign exchange by the foreign party to the Indian service provider as per rule 4 of Export of Services Rules 2005. But this rule never prescribed the time limit within which the payment is to be made.
From 1/4/11, rule 7 of Point of Taxation rules 2011 provided that the payment should be made within 1 year from date of export or such time RBI allows.
It also stated that from 1/4/12, the date of payment ought to be regulated by 3rd proviso to rule 6(1) of service tax rules 1994.
The said proviso is deleted from 1/7/12 by service tax second amendment rules 2012. Now with effect from 1/7/12, POPSR has replaced EOS. POPSR does not contain any stipulation in this respect.
So does it follow that there is no time limit for payment of export invoice raised by service provider.
Regards,
CAclubindia
