TaxTMI 
TaxTMI 
Software is developed and the same is sent to the customer outside India through cloud services. Whether it will be treated as export of services?
Software export
24 May 2023 
13 Replies 
6582 Views Asked by
Export of services: cloud delivered software counts as export only if place of supply, recipient location, and payment conditions are met.
Export status for software supplied over the internet hinges on classification as service or goods, applicability of OIDAR and place of supply rules, and satisfaction of export conditions: Indian supplier, recipient outside India, place of supply outside India (e.g. under OIDAR rules), receipt of payment in convertible foreign exchange, and not being establishments of a distinct person. Verify explanatory exceptions to place of supply, contractual terms (sale v. license), Schedule II treatment of IT services, and completion of SOFTEX/BRC payment documentation where relevant. (AI Summary)
Export status for software supplied over the internet hinges on classification as service or goods, applicability of OIDAR and place of supply rules, and satisfaction of export conditions: Indian supplier, recipient outside India, place of supply outside India (e.g. under OIDAR rules), receipt of payment in convertible foreign exchange, and not being establishments of a distinct person. Verify explanatory exceptions to place of supply, contractual terms (sale v. license), Schedule II treatment of IT services, and completion of SOFTEX/BRC payment documentation where relevant. (AI Summary)