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: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: articles on VAT and GST in India :: form 3cd :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: cpt :: empanelment :: due date for vat payment :: VAT Audit :: list of goods taxed at 4% :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD
 
 
« Latest Circulars »
 Payment Systems - Next Orbit (Shri R. Gandhi, Deputy Governor - February 20, 2017 - at the launch of Bharat QR Code at Hotel Trident, Mumbai)
 Financing MSMEs: Banks & FinTechs – Competition, Collaboration or Competitive Collaboration? (Shri S. S. Mundra, Deputy Governor – February 20, 2017 – at the NAMCABS Seminar organized by College of Agricultural Banking in Mumbai)
 Issuance of Rupee denominated bonds overseas – Multilateral and Regional Financial Institutions as Investors
 RBI-Formation of twenty one new districts in the State of Telangana - Assignment of Lead Bank Responsibility
 RBI imposes penalty on Janata Urban Co-operative Bank Ltd., Wai, District Satara
 Monitoring of Foreign Investment under PIS in Indian Companies- Incorporation in Ban List–M/s HDFC Bank Ltd.
 Reserve Bank of India seeks Comments on Draft Circular on Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactions
 Forward Rate Agreement (FRA) and Interest Rate Swap (IRS) - Withdrawal of Fortnightly return
 RBI-Foreign Investments in India
  RBI cancels the Licence of the Shri Chhatrapati Urban Co-operative Bank Ltd., Pimple Nilakh, Pune, Maharashtra
  Finance Minister meets the Directors of the RBI Central Board

Clarification on service tax on remittances
July, 11th 2012
                                                               Circular No. 163/ 14/2012 ­ST
                                 F. No. 354/ 119/2012- TRU
                                     Government of India
                                      Ministry of Finance
                                   Department of Revenue
                             Central Board of Excise and Customs
                                     (Tax Research Unit)
                                           *******
                                                    Room No 146, North Block, New Delhi-1,
                                                                  Dated the 10th July 2012.
To
       Chief Commissioner of Customs and Central Excise (All)
       Chief Commissioner of Central Excise & Service Tax (All)
       Director General of Service Tax
       Director General of Central Excise Intelligence
       Director General of Audit
       Commissioner of Customs and Central Excise (All)
       Commissioner of Central Excise and Service Tax (All)
       Commissioner of Service Tax (All)



Madam/Sir,
       Subject: Clarification on service tax on remittances - regarding.
        Concerns have been expressed in various forums regarding the leviability of service
tax on the remittance of foreign currency in India from overseas.
2.      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.
3.      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.
4.      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.
5.     This Circular may be communicated to the field formations and service tax assessees,
through Public Notice/ Trade Notice. Hindi version to follow.
                                                                                Yours faithfully,


                                                                               (Dr. Shobhit Jain)
                                                                                   O.S.D. (TRU)
                                                                                 Fax: 23095590



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

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