Exchange fluctutation gain or loss are liable to service tax
This query is : Open
dipesh mehta
(Querist)
17 October 2013
If we receive an extra amount due to foreign exchange variation, then whether service tax is payable on that extra amount received on account of fluctuation ? Similarly, for amount short received due to foreifn exchange variation ??
RENGARAJ R.K
(Expert)
18 October 2013
The query requires some more clarity.
Normally, when you receive money in Foreign Exchange it means that the amount is on account of export of goods or service tax which are totally exempted from ED or Service tax.If so, in my opinion, fluctuation also must be exempted.
Normally, when you receive money in Foreign Exchange it means that the amount is on account of export of goods or service tax which are totally exempted from ED or Service tax.If so, in my opinion, fluctuation also must be exempted.
Message likes :
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18 October 2013
No service tax is applicable in case on excess income or loss caused due to exchange rate fluctuation as there is no element of service provided by any1.
dipesh mehta
(Querist)
19 October 2013
Since the service was provided in India but payment is released by Foreign Company in Foreign Currency..How do we treat it...Support Your answers with relevant extracts or sections request you...As per me , Service tax is paid on consideration received whether on higher or on lower side . but than quetions arises of wat about bill raised. whether new bill is to raised or wat.
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