TaxTMI 
TaxTMI 
export of web site development service to Netherlands (Holland) is being done. Pls tell the procedure to be followed so the the service is exempt under export service.Invoice can be raised in INR and payment is received in bank from overseas buyer.
export of web site deveopment service
05 Nov 2014 
2 Replies 
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Export of service: receipt in convertible foreign exchange required for exemption; INR invoice acceptable if bank credits rupees.
Export of service qualifies only when specified conditions are met: provider in taxable territory, recipient outside India, service not excluded, place of provision outside India, payment received in convertible foreign exchange, and parties not mere establishments of a distinct person. The convertible foreign exchange receipt condition is crucial; however, invoicing in INR may be acceptable where the banker actually receives convertible foreign currency and credits the exporter's account in rupees (including remittances via VOSTRO accounts), as reflected in an appellate decision and RBI guidance. (AI Summary)
Export of service qualifies only when specified conditions are met: provider in taxable territory, recipient outside India, service not excluded, place of provision outside India, payment received in convertible foreign exchange, and parties not mere establishments of a distinct person. The convertible foreign exchange receipt condition is crucial; however, invoicing in INR may be acceptable where the banker actually receives convertible foreign currency and credits the exporter's account in rupees (including remittances via VOSTRO accounts), as reflected in an appellate decision and RBI guidance. (AI Summary)