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

Export of services proof: bank remittance advice can substantiate receipt in convertible foreign exchange and support export claim.
Export of services requires meeting IGST Act ingredients including receipt of payment in convertible foreign exchange. Banks have largely discontinued issuing physical FIRCs for normal trade and now provide electronic records or Foreign Inward Remittance Advice (FIRA) or bank remittance advices; such bank advices and e records suffice as proof of receipt in convertible foreign exchange. Authorities cannot reject export claims solely for lack of a physical FIRC and must verify facts with bankers; the burden rests on the authority to disprove export once evidence of receipt is furnished.