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CMA Final · Indirect Tax Laws and Practice · Zero Rated Supplies and Deemed Exports

Under the sub-rule (4) formula, how is the turnover of zero-rated supply of services determined for a service exporter?

Turnover of zero-rated services is the aggregate of payments received in the relevant period for such services and completed services whose advance was received earlier, reduced by advances received for services not completed in the relevant period. It is a receipts-based measure, not invoice-based.

  1. AThe value of all export invoices raised in the relevant period, whether or not payment is received
  2. BPayments received in the relevant period for zero-rated services, plus completed services for which advance was received earlier, less advances received for services not completed in the relevant periodCorrect
  3. COnly the advances received during the relevant period
  4. DThe FOB value declared in the Bill of Export

Explanation

Clause (D) defines the turnover on a receipts basis: payments received in the period, plus services completed for which advances came earlier, less advances for services not yet completed. Invoice value (A) is not the measure, and FOB value applies only to goods.

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