Exchange rate for depositing service tax

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CA Ritesh Jaiswal (Querist)
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28 February 2012 Dear all,

My company has received service from foreign service provider say for 10,000 Euro. Now as per Rule 2 (1) (d) my company has to deposit service tax on reverse charge basis @10.3% i.e. 1,030 Euro. At what exchange rate such service tax to be deposited with the department?
Please reply as early as possible?

Krishna Mohan

Krishna Mohan (Expert)
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28 February 2012 The exchange rate will be based on the latest point of taxation rules. In your case, the date of raising of invoice by foreign service provider or payment done by your company whichever is earlier need to be considered for exchange rate purposes.