Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: list of goods taxed at 4% :: form 3cd :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ACCOUNTING STANDARD :: due date for vat payment :: articles on VAT and GST in India :: TDS :: Central Excise rule to resale the machines to a new company :: empanelment
 
 
« Latest Circulars »
 RBI-Sources of Variation in Foreign Exchange Reserves in India during April-December 2016
 Developments in India’s Balance of Payments during the Third Quarter (October-December) of 2016-17
 RBI signs Memorandum of Understanding(MoU) on “Supervisory Cooperation and Exchange of Supervisory Information” with the Bank of Thailand
 RBI-Meeting Schedule of the Monetary Policy Committee for 2017-18
 RBI to conduct Overnight, 7 day and 14 day Variable rate Reverse Repo auctions under LAF on March 22, 2017
 Risk Management and Inter-bank Dealings: Operational flexibility for Indian subsidiaries of Non-resident Companies
 Master Directions on Issuance and Operation of Prepaid Payment Instruments in India
 RBI seeks comments on draft circular on Master Directions on Issuance and Operation of Pre-paid Payment Instruments (PPIs) in India
  Annual Closing of Government Accounts – Transactions of Central / State Governments – Special Measures for the Current Financial Year (2016-17)
 RBI-Reporting and Accounting of Central Government Transactions of March 2017
 Annual Closing of Government Accounts – Transactions of Central / State Governments – Special Measures for the Current Financial Year (2016-17)

CBEC ISSUES CLARIFICATION REGARDING LEVIABILITY OF SERVICE TAX ON THE REMITTANCE OF FOREIGN CURRENCY IN INDIA FROM OVERSEAS
July, 12th 2012
                                                                                                  "15"
                                                                                             pib.nic.in
                                PRESS INFORMATION BUREAU
                                  GOVERNMENT OF INDIA
                                           *****

CBEC ISSUES CLARIFICATION REGARDING LEVIABILITY OF SERVICE TAX ON
  THE REMITTANCE OF FOREIGN CURRENCY IN INDIA FROM OVERSEAS

                                                                   New Delhi: Ashadha 19, 1934
                                                                                 July 10, 2012


The Central Board of Excise and Customs (CBEC) issued today necessary clarification regarding the
leviability of service tax on the remittance of foreign currency in India from overseas. Various
concerns have been expressed at different forums in this regard.





                     The CBEC through a circular issued today stated that the matter has been
examined and it is clarified that there is no service tax per se on the amount of foreign currency
remitted to India from overseas. In the negative list regime, `service' has been defined in clause (44)
of section 65B of the Finance Act 1994, as amended, which excludes transaction in money. As the
amount of remittance comprises money, the activity does not comprise a `service' and thus not
subjected to service tax.

                   In case any fee or conversion charges are levied for sending such money, they are
also not liable to service tax as the person sending the money and the company conducting the
remittance are located outside India. In terms of the Place of Provision of Services Rules, 2012, such
services are deemed to be provided outside India and thus not liable to service tax.

                             It is further clarified that even the Indian counterpart bank or financial
institution who charges the foreign bank or any other entity for the services provided at the receiving
end, is not liable to service tax as the place of provision of such service shall be the location of the
recipient of the service, i.e. outside India, in terms of Rule 3 of the Place of Provision of Services
Rules, 2012.

                                                      ******

DSM/SS



 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions