19 February 2010
Furst of all examine what is the service and whether it is taxable. Second whether it isd covered in the Rules and satisfies the critereon for payment under reverse charge. The rate at whcih the same is booked in the accounts can be considered if liable.
It's taxable service as per the rules prescibed. And chargable to tax @ 10.3%. But doubt is whether the service tax is on payment basis or receipt basis we have to follow while paying it and what the diff. in forex can be treated as exchange loss or gain ?
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