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    Advance payment for export of Service

    Posted By : Shweta / Published on : 19-Feb-2019 05:37 PM / View : 605 / Comment : 1

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    Dear Learned friends

    Please let me know in case of a export of service, what are the applicable provisions under fema, specially w.r.t. duration by which services are to be completed from the date of advance.

    Thanks in advance.
    Read more on : service export payment advance

    • Under FEMA (Foreign Exchange Management Act), export of services is treated as a current account transaction and is permitted under the Liberalised Remittance Scheme (LRS) up to a certain limit.

      As per the regulations, an exporter of services can receive payment in advance from a foreign customer up to the value of the service to be provided. However, it is mandatory to ensure that the services are rendered within a period of one year from the date of receipt of payment. If the services are not rendered within the said period, the exporter must either extend the time limit for rendering the services or refund the amount received.

      The above provisions are specified in the Foreign Exchange Management (Current Account Transactions) Rules, 2000 under FEMA. It is advisable to consult a professional to ensure compliance with all relevant regulations and procedures related to export of services under FEMA.

      31-03-2023 / 11:10:05 AM
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