TaxTMI 
TaxTMI 
TaxTMI 
2019 (9) TMI 1526
X X X X Extracts X X X X
X X X X Extracts X X X X
....un-Area Real Estate Private Limited in Appeal no. ST/885549/2014 [2015 (39) S.T.R. 897 (Tri. - Mumbai)]. 2. Heard both sides and perused the appeal records 3. The Ld. Chartered Accountant appearing on behalf of the appellant argued that the issue in the instant appeals are squarely covered in the decision passed by the Tribunal in case of Sun Area Real Estate Pvt. Ltd. in Appeal no. ST/88549/2014 [Supra]. The facts and the issue involved therein is identical which is tabulated below: Particulars In case of Sun Area Real Estate Pvt. Ltd [Supra] In case of Appellant Facts of the case Activity Engaged In Export of service Export of service Mode of receipt of payment In Indian rupees from Deutsch....
X X X X Extracts X X X X
X X X X Extracts X X X X
....above provision it is clear that Foreign Inward Remittance Certificate (FIRC) is issued only in respect of foreign exchange. In the present case, FIRCs were issued and there is a specific certification that the payment has not been received in nonconvertible rupees, which establishes that the payment received and mentioned in the FIRCs are other than non-convertible foreign exchange, in other words, the payment is in convertible foreign exchange. I have gone through the Notification No. FEMA 9/2000-RB, dated 3rd May, 2000, the relevant para No. 4 of the said Notification is reproduced below : "4. Manner of Repatriation. - 1. On realisation of foreign exchange due, a person shall repatriate the same to India, namely bring int....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n exchange by an authorised dealer, whether by way of remittance from a foreign country (other than Nepal and Bhutan) or by way of reimbursement from his branch or correspondent outside India against payment for export from India, or against any other payment, shall be as mentioned below: Group Manner of receipt of foreign exchange (1) member countries in the Asian Clearing Union (except Nepal) namely, Bangladesh. Islamic Republic of Iran, Myanmar, Pakistan and Sri Lanka (a) payment for all eligible current transactions by debit to the Asian Clearing Union dollar account in India of a bank of the member country in which the other party to the transaction is resident or by credit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ht out in this case, are clear as to how the remittance to the foreign reinsurance company is made through the Reserve Bank of India in conformity with the agreement between the appellant and the foreign reinsurer, and that the remittance that the amount due to the foreign reinsurers as also the brokerage due to the appellant and the balance due to the foreign reinsurer is remitted (and expressed so) in dollars. It is common ground that the entire transaction effected through the media of the Reserve Bank of India is expressed in foreign exchange and in effect the retention of the fee due to the appellant is dollars for the services rendered. This, according to us, is receipt of income in convertible foreign exchange. It seems to us that a ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tent of his brokerage and remaining amount was remitted to foreign insurer in the foreign exchange. The issue was whether the brokerage in Indian rupees retained by the Indian Insurance broker shall be treated as foreign exchange or otherwise. The Hon'ble Supreme Court has held that the said amount of brokerage retained by the Indian insurance broker from the total amount due to the foreign insurer shall be treated as foreign exchange. In view of the above judgment, I am of the view that when a foreign bank is maintaining Indian rupees in their account obviously, such Indian rupees was obtained in lieu of foreign exchange. For example, if any payment is made from India to any foreign country, it is to be made in foreign exchange and thus th....