Rule 6A of Service Tax Rules 1994

[CABALRAM PANDEY]

Dear Experts,

Please clarify the meaning and actual sense of the law maker for the clause (e) of Sub-rule (1) of Rule 6A, as mentioned below:-

The payment for such Services has been received by the provider of service in convertible foreign exchange.

In my opinion this line wants to say that payment has already been received by Service Provider in CFE,

please enlighten my limited knowledge.

Thanks & Regards

Ca Balram Pandey

AI Summary

Clarification Sought on Rule 6A, Service Tax Rules 1994: Is Adjusting Service Receipts Against Foreign Payments Considered CFE? A participant in a discussion forum sought clarification on the interpretation of clause (e) of Sub-rule (1) of Rule 6A from the Service Tax Rules 1994, specifically regarding the receipt of payment in convertible foreign exchange (CFE) by service providers. Respondents explained that receiving CFE is essential for obtaining export benefits. Questions were raised about whether adjusting service receipts against foreign currency payments qualifies as receiving CFE. It was noted that the Reserve Bank of India allows the 'set-off' of export receivables against import payables under certain conditions, delegating this authority to authorized banks. Another respondent confirmed that receiving CFE proves the service was provided abroad, fulfilling export obligations.