Foreign exchange income
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 June 2015
Sir,
A hotel converts foreign currency for foreign visitors to its hotel at the time they arrive and later get those foreign currency converted through Centrum.
Meanwhile, It generates income by paying less home currency and getting more of it through conversion.
Is this allowed?? Is Service tax payable??
A hotel converts foreign currency for foreign visitors to its hotel at the time they arrive and later get those foreign currency converted through Centrum.
Meanwhile, It generates income by paying less home currency and getting more of it through conversion.
Is this allowed?? Is Service tax payable??
CA R SEETHARAMAN
(Expert)
21 June 2015
Yes it is allowed. No service tax applicable on conversion gain as it is not due to any rendering of service. But service tax applicable on any charges levied on such conversion.
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