Whether this amounts to Export of Services:

Others 710 views 3 replies

Malav Shah

Company Secretary and AVP Legal

171 Points Posted on 05 October 2009

Hi Friends

A Company provides equity research and recomendations on Indian Stock market through website as paid subscripttions.

The paid subscriber will recieve recomendations and research reports via emails and have access to the website.

Some subscribers are non- residents in India. They can be NRI or Foreign nationals.

Our principal place of business is in India.

My query:

Whether providing services to such NRI or foreign nationals would mean that Company is exporting its services?

If yes, what are the complainces required under RBI or FEMA or Foreign Trade Policy?

Regards

Malav

Replies (3)

Ashis Mahapatra

Consultant-Tax & FEMA/FDI

183 Points Posted on 06 October 2009

Dear Malav

Of course this amounts an export of service & company should obtain the IEC code respectively.

Know that,Unlike export of Goods or Software/IT/ITeS (which regulated under CBEC/STPI/RBI/AD bank), export of SERVICE is not Highly Regulated in India in terms of Pricing or repatriation.In practice some small service exporter even donot know documentation .They simply receive the cheque/Wire transfer for their service rendered in any mean.

But exporter must obtain the IEC and comply & process inward remittance through AD Bank.No direct compliances to RBI unless it contradict any provision of FEMA. Attached Master Circular for reference.

Rgrds