Clarification - export services - realisation in foreign exchange, Service Tax

[Suhit Aggarwal]

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?

Posts / Replies

[Mukesh Kumar]

To claim benefit of exemption from service tax, you need to receive the amount in convertible foreign exchange. The amount received in Rupee is not eligible for exemption from service tax.