As per rule 6(7B) of service tax rules 1994 amended by notification no. 19/2008 st dated 10.05.2008 service tax on forex will be charged @ 0.25% on amount of dollars exchanged(suppose) but the banks and other dealers are charging a transaction fees on which they are charging service tax @ 12.36% what is the correct procedure?
3 Replies
jatin kapoor
(CA FINAL)
(1586 Points)
Replied 08 May 2009
notification no. 19/2008 st dated 10.05.08
Attached File : 31 to be published in the gazette of india.doc downloaded: 204 times
Jigar
(Student)
(661 Points)
Replied 08 May 2009
hey Jatin,
I don't know the correct procedure
but one of my clients used to charge 12.36% on the amount of service rendered i.e
if he has given Rs10000 in INR in exchange of Forgien Currency and chagred Rs.100 as service charge then he is leaving ST on Rs.100 only and not on whole amount
and i think it is correct as my principle also accepts the same
similarly it will be charged at new rate
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