Service tax on free gift delivery.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 October 2012
Dear Sir,
My employer- a finance company is doing forex transactions [currecny exchange],monry transfers, swift transfers etc is planning to give free gifts to selected customers.The employer has overseas operations as well.The money expended by the Indian Offices will be reimbursed from overseas.No profit will be generated in India. Items for gifts will be purchased in India.
What would be the impact of service tax on the above mentioned transations ?
Kindly help me .
Thank you in advance for all answers.
My employer- a finance company is doing forex transactions [currecny exchange],monry transfers, swift transfers etc is planning to give free gifts to selected customers.The employer has overseas operations as well.The money expended by the Indian Offices will be reimbursed from overseas.No profit will be generated in India. Items for gifts will be purchased in India.
What would be the impact of service tax on the above mentioned transations ?
Kindly help me .
Thank you in advance for all answers.
CA Sahil Singla..
(Expert)
31 October 2012
Giving gifts do not involve any service. Also, it is done without any consideration in return.So, no question of service tax.
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