I had a doubt regarding the explanation given under banking and other financial services. Which goes as follows
"For the purposes of this clause, it is hereby declared that purchase or sale of foreign currency, including money changing includes purchase or sale of foreign currency, whether or not the consideration for such purchase or sale, as the case may be, is specified seperately."
My doubt is with respect to the part in bold. So, if 100$ are convereted into rupees at $1=Rs. 50 and the bank charges Rs. 100 as service charge. What is the service tax implication? should we apply that 0.1% slab rate on the gross as well as 10.3% of Rs. 100. If so doesnt it amount to double taxation on the same transaction?
CAclubindia
