QUESTION
When the customer is in India but location of service out of India (payment
received in INR) b) When the customer is out of India and location of service
out of India(payment received in Foreign Currency)
ANSWER
As per our understanding, your question is whether the transaction is export of
service or not in given situations.
Law Applicable:
SECTION 2 of IGST Act
(6) 'export of services' means the supply of any service when,''
(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of
service in convertible foreign exchange; or in Indian rupees wherever permitted
by the Reserve Bank of India and
(v) the supplier of service and the recipient of service are not merely
establishments of a distinct person in accordance with Explanation 1 in section
8;
Interpretation:
For service to be Export, all the conditions specified
above must be fulfilled.
In case 1 where customer is in India but the location of service out of India
and payment is received in INR, then it does not constitute as Export of
service.
In case 2 where customer is out of India, location of service out of India and
payment is received in Foreign Currency, then all the conditions of Export are
fulfilled, hence it will be export of service.
Conclusion:Case 1 It is not export of service
Case 2 It is export of service (Reply dt.15-03-2020)