TMI BlogClarification on export of services under GST.X X X X Extracts X X X X X X X X Extracts X X X X ..... . Issue Clarification 1 In case an exporter of services outsources a portion of the services contract to another person located outside India, what would be the tax treatment of the said portion of the contract at the hands of the exporter? There may be instances where the full consideration for the outsourced services is not received by the exporter in India. 1. Where an exporter of services located in India is supplying certain services to a recipient located outside India, either wholly or partly through any other supplier of services located outside India the following two supplies are taking place:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urced part of the services), that portion of the consideration shall also be treated as receipt of consideration for export of services in terms of section 2(6)(iv) of the IGST Act, provided the: (i) integrated tax has been paid by the supplier located in India for import of services on that portion of the services which has been directly provided by the supplier located outside India to the recipient of services located outside India; and (ii) RBI by general instruction or by specific approval has allowed that a part of the consideration for such exports can be retained outside India. Illustration : ABC Ltd. India has received an order for supply of services amounting to $ 5,00,000/- to a US ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be available for the total realization of convertible foreign exchange by ABC Ltd. India and XYZ Ltd. Mexico. 2. Difficulty if any, in the implementation of this Circular may be brought to the notice of the undersigned. (Dipak M. Bandekar) Commissioner of State Tax Note : Similar circular is issued under Central Goods and Services Tax Act, 2017 by the GST Policy Wing, Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance, GOI, New Delhi vide Circular No. 78/52/2018-GST dated 31/12/2018. - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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