Foreign remittance

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2010 My Company is having software business incurring some expendiure on advertisment in respect of business promotion and other party Charged service tax on the same. I make the payment for the same. The foreign Company after some time remitt some expenditure in foreign currency to me not to other party in respect of such expenditure. I have the folloing query on the above case:
1. Should I charged the sevice tax on the foreign remittance to foreign country
2. Is any other way to secure from Service tax applicable

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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15 January 2010 The type of foreign service whether taxable or not is the first step. If it is then reading and finding out whether it is so under the payment to Non Residents from India Rules to be examined.
If liable then payment to be made and credit availed. The credit is to be used for payment of ST on doemstic services. If no such services or negligible amount then refund of accumulated tax under Rule 5 of cenvat credit rules or Notification udner the Export of Servic eRules to be applied for.

Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2010 Sir thanx for reply but I am still have certain missunderstaindings
My question is only that should my company charged any service tax on the amount reimburse by the foreign company in the foreign exchange and deposit the same to goverment.
As per my query no third party is included only my company & foreign company who reimburse the amount is included.
sir as per my opinion I am not rendering any service to foreign company. foreign company make payment to me to only share the part of such expenses. I pay the service tax in india on advertising service to service provider,
Sir now tell should I still liable to charged service tax on the foreign company.
Please provide the reliable source for the same
Sir if I charged the service tax on the foreign remittance it is double charging of service tax.
for examle If advertisment exp is Rs. 100000 and service tax on the same is Rs.10300 and I pay to service provider Rs.110300 immediatly and I debit Rs. 110300 in my p & L a/c.After 10 days foreign company pay me rs. 50000 in respect of such service which i credit in my P & L a/c. Now tell should I charge ST on Rs. 50000 (Rs. 5150) and demand Rs. 5150 more

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