Criteria - export of services

[Sanjeev Sharma]

Invoice is raised on Singapore Company for export of services under the head " mannpower services" in Indian Rupees. Payment is also recd. in INR. What should we do or find to see that we are covered under Export of Service. ??

[Mukesh Kumar]

If the amount against services exported is being received in INR, you shall not be entitled to get the benefit of export of services exemption.

[Madhukar N Hiregange]

If the people are recrutied outside India and personnel provided otuside India then the same not in the pruview of ST in India. If provided in India then liable to ST.

AI Summary

Export of services: payment in home currency disqualifies exemption; place of personnel supply determines taxability.
Export of services treatment for manpower supplies requires payment in an acceptable foreign currency; receipt of consideration in Indian rupees disqualifies the transaction from the export exemption. In addition, if personnel are recruited and supplied outside India the supply is not subject to domestic service tax, whereas provision of personnel within India renders the service taxable.