We have received income in foreign currency in our foreign currency account. we have converted a portion of the same into indian currency & service tax is paid on that. Whether we are required to pay service tax on the balance amount in foreign currency account or any exemption is available on the same.If yes please give me he notification no also. Please its very urgent.
There are specific exemptions on Export of Service. To claim the exemption under Export of Service, receipt of consideration in convertible foreign exchange is a basic criteria. If the other conditions based on the specific service provided by you is satisfied than the whole proceeds can be exempt from service tax. To ensure the exemption detailed analysis of facts should be examined.
If income which you have received in foreign currency in your bank account, it is towards services which you had provided in India.Then we have to pay service tax on amount which you had collected.
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