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 and SUN]

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

Export of Services requires bank realisation certificate rather than only FIRC for claiming exemption under service law.
A mere FIRC is not sufficient to claim the export-of-service exemption; the FIRC must be converted into a Bank Realisation Certificate (BRC), which is the bank-issued document accepted by excise/tax authorities as proof of payment realization from abroad for purposes of export of services.