Export of Service - Payment received in Indian Rupees with support of FIRCill ths th

[Vinay Kunte]

My query is as under:

One of our clients receives payment against the export of Service in Indian Rupees in his bank account directly from the overseas bank of the Customers with the supporting document in form of FIRC.

Will this qualify for the exemption under export of Service or the receipt against FIRC is enough to prove that the Service has been exported and the payment is received as required in Foreign currency as supported by FIRC?

Please confirm.

[YAGAY andSUN]

In this scenario the FIRC should be converted to BRC to avail the benefit of export of services.

[Vinay Kunte]

Can you please explain the term BRC?

[RENGARAJ R.K]

BRC= BANK REALISATION CERTIFICATE ISSUED FROM BANK WHICH IS ACCEPTED BY THE EXCISE AUTHORITIES AS PROOF OF PAYMENT FOR THE EXPORT.

AI Summary

Payment for Exported Services in Rupees: Does It Qualify for Service Tax Exemption? Convert FIRC to BRC for Benefits. A client receives payment for exported services in Indian Rupees directly from an overseas customer's bank, supported by a Foreign Inward Remittance Certificate (FIRC). The query is whether this qualifies for a service tax exemption as an export of services. One response suggests converting the FIRC to a Bank Realisation Certificate (BRC) to benefit from export service exemptions. Another response clarifies that a BRC is a certificate issued by a bank, accepted by excise authorities as proof of payment for exports.