Service tax on receipt in usd

Dear soumya As per my knowledge in service tax, assesee should first convert the amount received in USD then the liability should be calculated and deposited thereon. So to be precise you should deposit ST also on fluctuation profit as it is our receipt. Also you should deposit service tax on accrual basis wef 1 july 2011 and not on receipt basis. Others comments are invited.

Dear Sowmya,

 

As per the point of taxation rules, the date of receipt of consideration is what is relevant for the purpose of levy of service tax.

 

The consideration here may be in USD also. The date of conversion here is not relevant. Thats my view.

 

Now, going as per general thinking, just take a case where there is a fluctuation loss. Will the Department refund you the excess service tax paid? I dont think so. 

 

Hence, in my view, the date of receipt of consideration is what is relevant.

 

However, if the invoice is issued earlier to date of receipt or service is completed before receipt of consideration, then that date would be the point of taxation date, and the exchange rate would be taken accordingly.

 

Pls revert back if you think I'm wrong or if you have further doubts..

First you are not exporting service and receiving payment in india in USD so as per POT rules you hav to pay tax on the day of Payment Recvd or Invoice made whichever is earlier. No service tax be chargable on conversion from USD to INR.

Mail ur any querry to : kothica @ gmail.com

SBI levy service tax on conversion from US $ to INR, further they issue a receipt too.

Whereas, Bank of Maharashtra, which again is a nationalised bank, only does the conversion. They neither charge Service Tax so no question of issuing a receipt.

Is service tax leviable on conversion of foreign currency??

Sir,

as per above consideration POT, Can we charge S.Tax on advance receipt as per notification W.E.F. 01.07.11 as acrual base or what ?

see the point of taxation rules guides us to pay invoice on the date of

a)rendering service

b)raising service and

c) getting money whichever is first.

 

When there is invoice for services rendered the date will be the date of submitting the invoice.

When there is no invoice on the date of rendering service the date of receipt of money.

Therefore the gain on foreign exchange on receipt of the money towards the invoice already raised does not attract service tax.  Other views are welcome

Yes service tax is not applicable for forex fluctuation. for the purpose of payment of service ensure that the exchange rate is the one which is published by customs / central excise