Exemption - Export of Services - Payment received in Indian Rupees

[Sarwan Agarwal]

Dear Surenderji, inrelation to my qurrey submitted on 14.12.06 regarding inbound tours, pl. explain the provision if the payment is recd. in convertible foreign exchange. Further also explain in case of out bound tours, whether the services are exempt even if payment recd. in indian rupees. Regards

[Surender Gupta]

Only one factor that payment has been received in foreign exchange does not make any service exempt (earlier it was so, but not now). Inbound tour or outboud tour shall be exempt only if they are meeting the conditions of Export of Services Rules, 2005.

AI Summary

Export of services exemption requires meeting rule conditions, not merely receipt of payment in foreign exchange.
Receipt of consideration in payment in foreign exchange alone does not automatically confer exemption; inbound and outbound tour services are exempt only if they satisfy the eligibility criteria and procedural conditions of the Export of Services Rules, 2005.