20 December 2012
we are enanage in hotel industries.our international guests request to swap credit card for providing indian cuurency .we are not authorised for it.we dosn't earen any commission.wheather we are liable to charge service tax or not
While explaining the meaning of service a transaction in money or actionable claim is specifically excluded. But the conversion of one form currency into another form of currency by charging a separate consideration is a taxable service, if nothing charged as separate then this is not a service as per the explanation given below hence no question of service tax.
Explanation 2.— Transaction in money shall not include any activity relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged.
CAclubindia
