Foreign exchange/ service tax
This query is : Resolved
23 May 2015
Dear Sirs My query is as under. 1. We receive inward remittances from our clients.2. On receipt we convert the same to INR. 3. The bank charges service tax as per slabs of the RBI. 4. The rates are different than what used to be 12.36 until June.Pls adv yours how to claim CENVAT or Service Tax Credit for such taxes. Thanks Sam.
Guest
Guest
(Expert)
23 May 2015
Dear Mr Sam,
If I understood correctly, for converting USD into INR, there is a service charge on which the bank charges service tax. Your query is how to claim CENVAT for such taxes. In my opinion, YOU CANNOT CLAIM CENVAT on the same since the service is received after provision of service (technically speaking, it is after place of removal). I would recommend you not to take CENVAT credit.
If I understood correctly, for converting USD into INR, there is a service charge on which the bank charges service tax. Your query is how to claim CENVAT for such taxes. In my opinion, YOU CANNOT CLAIM CENVAT on the same since the service is received after provision of service (technically speaking, it is after place of removal). I would recommend you not to take CENVAT credit.
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