As per the existing provisions in case of Export of Service the payment in convertible foreign exchange should be received within six months from the date of Invoice or extended period allowed by Reserve Bank of India.

If such payments are not received in above time lines, the Export of Service shall not be treated as exempted and accordingly the service provider would be required to pay 6% of the service value or specified amounts. It has been proposed to limit such period to maximum of 1 year from the date of Invoice. Further, it has been clarified that amount if any paid on Export Service within 1 year period shall be allowed as CENVAT Credit.

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