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Import of Services

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Shreyalmuri (Querist)

18 February 2010 Hi,

We have received Invoices for Import of Services form Outside India in the month of Nov 2009 in USD.

We are liable to pay the Service Tax now.

1. At what rate I have to convert USD into INR for Service Tax Calc.s?

2. Rate of Service Tax in Invoice is related to Jan 2009.

Regards,
Sree :)

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

19 February 2010 Furst of all examine what is the service and whether it is taxable. Second whether it isd covered in the Rules and satisfies the critereon for payment under reverse charge. The rate at whcih the same is booked in the accounts can be considered if liable.

Shreyalmuri

Shreyalmuri (Querist)

22 February 2010 Sir,

It's taxable service as per the rules prescibed. And chargable to tax @ 10.3%.
But doubt is whether the service tax is on payment basis or receipt basis we have to follow while paying it and what the diff. in forex can be treated as exchange loss or gain ?

Regards,
Sree :)

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