X LTD. INDIAN COMPANY IS SUBSIDIARY OF NON RESIDENT COMPANY OF JAPAN. NON RESIDENT COMPANY WAS AWARDED PROJECT IN INDIA. IT ESTABLISHED PROJECT OFFICE FOR THE PURPOSE. X LTD. PROVIDED ACCOMODATION AND TRASNPORTATION ETC. TO EXPATIATES OF NON RESIDENT COMPANY CAME FOR ITS WORK IN INDIA FOR THE PROJECT. X LTD IN MARCH 2010 RAISED INVOICE ON PROJECT OFFICE IN INDIA IN INDIAN RUPEES AND ADDED SERVICE TAX IN ITS INVOICE CONSIDERING IT AS NOT EXPORT OF SERVICE.X LTD. RECEIVED INDIA RUPEES FROM PROJECT OFFICE OF NON RESIDENT COMPANY .
QUERY IS:
WHETHER ABOVE TRANSACTION IS LEGAL FROM THE ANGLE OF FEMA?
