Question ID :
41046
Export of Service and receiving of remittance.
Dear Sir,
A Pvt. Ltd. Co. is creating websites and accounting systems for clients based in USA & Europe. These are treated as export of service. Company raised invoice on say 01-April-2020. Now the question is :
(1) What is the maximum time limit to receive the sales proceeds in convertible foreign exchange?" so that the above Invoice can continue to be treated as export of service.
(2) Is there any change in the time limit for receiving convertible foreign exchange?
Thanks & regards
Posted by
SK
on
May 18, 2021
Filed Under
GST
The proceeds must be realised under CGST Act, 2017 within a time span of one year. However this period can be extended by the commissioner.
Further under FEMA time limit is 9 moths which can be further extended by the authorised dealer by six months. One should take care of the provisions of both laws in harmonisation with each other.
Posted by
CA. JHA SHANKAR KUMAR on
May 26, 2021