TaxTMI 
TaxTMI 
Whether in export of service it is must to receive export realisation in convertible foreign exchange? In some cases service exporter ask importer to remit exact amount and importer remit money from abroad in rupee. The FIRC in this case will not show any foreign currency.Will it be counter valid for export of services?
Clarification - export services - realisation in foreign exchange
05 Aug 2009 
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Export of services convertible foreign exchange requirement bars rupee remittances from qualifying for service tax exemption.
To qualify for service tax exemption on export of services, the consideration must be realised in convertible foreign exchange and evidenced accordingly (for example by a FIRC). Amounts received in Indian rupees, even if remitted from abroad, do not meet the convertible foreign exchange requirement and are not eligible for the exemption. (AI Summary)
To qualify for service tax exemption on export of services, the consideration must be realised in convertible foreign exchange and evidenced accordingly (for example by a FIRC). Amounts received in Indian rupees, even if remitted from abroad, do not meet the convertible foreign exchange requirement and are not eligible for the exemption. (AI Summary)
