Taxability of Service payment in foreign currency

[Guest]

Vide notification no 30/2007- Dated 22.05.2007, effective from 01.06.2007, the word ' PROVIDED OUTSIDE INDIA ' has been omitted for Export of Services. Keeping the above, whether any services rendered in INdia and the payment received in INdia in convertible foreign exchange shall be out of Service Tax liability , irrespective the use of services in INdia or Outside India

AI Summary

Changes in Service Tax Rules: Foreign Currency Payments and Export Rules under Notification 30/2007 Effective June 1, 2007. A discussion on the taxability of service payments in foreign currency highlights changes due to notification no 30/2007, effective from June 1, 2007. The omission of 'provided outside India' from the Export of Service Rules raises questions about service tax liability for services rendered in India with payments received in convertible foreign exchange. One response clarifies that services must be used outside India to qualify as exports and be exempt from service tax. Another response emphasizes the difficulty in ensuring services are used outside India, noting the intent to avoid exporting taxes.