Export of services and FIRC

[chetan jadhav]

During the adjudication of SCN, with respec to to export of services, assesee submitted the forein inward remittance advice from the bank as proof of receipt of consideration in foreign currency. However department rejected the advice on following grounds -

1. These were just advice and not certificate (ie FIRC was not in a proper format)

2. inward remittance advice does not prescribed purpose of receipt

Now when we contatced our bankers to isssue Foreign Inward Remittance Certificate (instead of advice), we are told that, banks has stopeed issuing FIRC ( for other than FDI) from 2016 and now only advices are issued.

My question -

In our view, no specific format of FIRC has been prescribed under services rules/finance act 1994. what is necessary is to proov receipt of foreign currency.

Can department still challenge the export of services for not submitting FIRC in proper format ???

AI Summary

Foreign Inward Remittance Certificate Not Mandatory for Export of Services Under GST and FEMA Regulations A discussion on a forum addressed the issue of whether a Foreign Inward Remittance Certificate (FIRC) is mandatory for proving the export of services. The original query raised concerns over the rejection of foreign inward remittance advice by tax authorities due to its format and lack of specific details. Respondents explained that banks have stopped issuing FIRCs for non-FDI transactions since 2016, and only provide remittance advice. It was emphasized that the receipt of foreign currency can be substantiated through bank advice, and authorities should not insist on FIRCs. The discussion also highlighted that under the GST and FEMA regulations, the export of services is not taxable if the place of provision is outside India, regardless of FIRC submission.