software services

[Madhavan iyengar]

X is a software company based in india and has exported services in fy 13-14/14-15/15-16 to its related party which is a separate incorporated company in europe and also claimed refund of input services under rule 5A as it satisfies all conditions

issue: Due to some international tax judgements in European union there is a upward revision in the pricing of all the earlier contracts and the foreign company has paid the additional amount in fy 17-18 after making calculations based on the judgements and this is a significant amount.

this additional amount which is received in march 18 in relation to earlier year contracts can it be held as export of services under gst and accordingly can refund of itc be claimed.

AI Summary

Export of services treated as integrated with prior performance, permitting input tax credit refund when additional consideration is paid.
Additional consideration paid later for previously exported services is integrated with those past exports and can be treated as export of services for refund of input tax/CENVAT credits, provided documentary linkage (contracts, proof of retrospective price revision and original invoices) substantiate that the receipt relates to earlier export contracts and refund conditions are otherwise satisfied.