reena (reena9823@gmail.com) (165 Points)
06 June 2012Dear Colleagues,
Is service tax chargeable on foreign remittance?
Eg: There is an event managemnt company. It gets its fees from foreign countries. The services, however, is provided in India to Indian Resident only. Is the amount chargeable to service tax??
Reply Soon.
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 06 June 2012
If services are rendered to Indian resident in India, how come consideration is received from out of India in convertible foreign exchange through normal banking channels. PLease clarify. Check if you satisfy rule 3 of Export of service rules 2005.
Regards,
reena
(reena9823@gmail.com)
(165 Points)
Replied 06 June 2012
the company provides event management services to residents of india. They pay the amount of service from their foreign banks.
Does that amount to export of service?
Vijay
(Adamo Studio)
(2112 Points)
Replied 06 June 2012
TONYJA
(free lance)
(136 Points)
Replied 08 June 2012
Yes ST Payable on Reverse mechanisam.if any service received from non resident and consumed in india Service reciver has to pay the ST & can avail the input in the same month based on the CHALLAN.
Refer section 66A.
Regards
Tony
CAclubindia
