Service tax on inward remittance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2016 Dear Experts,

One of my client provide courier service in India. They had a counter part in China. China Counter part collect shipment in china and dispatch the shipment to India to be delivered in India. My Client clear the shipment in India and deliver the same to the consignee as per the details given in the shipment .
My client charge the courier charges and custom duty to China for delivery of shipment in India.
China counter part remit the payment according to the bill charge by my client.
Tilll date client pay service tax on the amount remitted by China as per the rate of service tax.
I want to ask the following question :
1. Is this is correct way to pay service tax on inward remittance on service provided in India.
2. Any rebate available on foreing remittance inward.
3. What is the correct way to calculate the service tax on inward remmittance and how to calculate the rebate on inward remittance.
If possible please explain with example.
Please specify the rule in this regards
Thanking you,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 October 2016 1 Yes this is the right way to pay service tax.
2 Exclude the remittance towards customs duty no service tax applicable on it.
3 No rebate allowed.