Export of services: full contract value treated as export if reverse charge tax paid and RBI permits retention abroad. Where an Indian supplier exports services but outsources part to a non resident supplier, the contract gives rise to (i) export of services by the Indian supplier for the full contract value and (ii) import of services by the Indian supplier for the outsourced portion. The Indian supplier must pay integrated tax on the imported portion under reverse charge and may claim input tax credit. If the foreign recipient pays the non resident supplier directly, the full contract value may still be treated as export provided reverse charge tax on the imported portion is paid and RBI permits retention of export consideration outside India.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Export of services: full contract value treated as export if reverse charge tax paid and RBI permits retention abroad.
Where an Indian supplier exports services but outsources part to a non resident supplier, the contract gives rise to (i) export of services by the Indian supplier for the full contract value and (ii) import of services by the Indian supplier for the outsourced portion. The Indian supplier must pay integrated tax on the imported portion under reverse charge and may claim input tax credit. If the foreign recipient pays the non resident supplier directly, the full contract value may still be treated as export provided reverse charge tax on the imported portion is paid and RBI permits retention of export consideration outside India.
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