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Service tax query urgent

Sweety Jain (Article) (40 Points)

06 August 2011

An IndianTour & Travelling Company raises invoice in Foreign currency & receives money in foreign currency only to provide services in India. Will service tax liable on that?

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13 Replies

kamal kishor sen (STUDENT Rajasthan) (2156 Points)
Replied 06 August 2011

Yes i think services provided in India is liable for service tax.

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C.A. Parin Poojara (Chartered Accountant) (90 Points)
Replied 06 August 2011

Yeah ofcorse service tax should be leviable irrespective of mode of consideration. In case there's any difficulty to derive consideration in indian money value then valuation should be done as per Service Tax (Determination of value) Rules,2006.

Shubham Singhal (.) (130 Points)
Replied 06 August 2011

Yes, Service tax will be applicable.

C.A ARPAN BANSAL (PARTNER) (29 Points)
Replied 06 August 2011

YES! BECAUSE SERVICE IS BEING RENDERD IN INDIA

Nitin Grover (CS) (1228 Points)
Replied 07 August 2011

Yes its chageable because manner of consideration doesnt matter.

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CA Rashaad Meer (...) (129 Points)
Replied 07 August 2011

Yes The Company Is Liable To Pay Service Tax, Coz Service Is Rendered In India...

%$ anil ....article trainee (help ever fnd forever) (204 Points)
Replied 07 August 2011

its mandatory becaz services rendered in india .....so have 2 pay must

Sujit RN (Chartered Accountant) (22 Points)
Replied 07 August 2011

Tour and travel services fall under clause (ii) of Rule 3(1) of the Export of Service Rules, 2005, meaning that these services are performance based.

In your case, if it is clear that services are wholly performed in India, the services would not classify as 'export of service' and therefore, would be liable to Service Tax.