Service tax applicable for foreign transaction ?

Yes in certian cases in conversion of FE into INR, import of services.

If you are more specific about a particular kind of service for which you have a question in mind, the same can be answered.

Please refer below notifications with respect to export of services:

The export of service is governed by the Export of Service Rules, 2005. ( notified vide Notification No. 9/2005 – service tax, dated 03.05.2005 and subsequently amended by Notification No.28/2005 – service tax, dated 07.06.2005 and Notification No. 13/2006- service tax dated 19.04.2006, Notification No. 02/2007- ST dated 01.03.2007, Notification No. 30/2007- service tax dated 22.05.2007 and  Notification No. 20/2008- service tax dated 10.05.2008 and 6/2010-ST dated 27.02.2010, Notification 42/2011 ST, Notification 22/2011 ST both dated 1/3/2011 and Notification 36/2011 ST dated 25/4/2011 )

The taxable services have been divided in three groups and some group-specific criteria are prescribed for provision of a particular service in a particular group to be treated as export of service. However, there is a common condition which is required to be fulfilled by all the taxable services (irrespective of the group they belong to) to qualify as exported services.

These two conditions are: (i) such service is delivered outside India and used outside India, and (ii) the payment received for providing such service should be in convertible foreign exchange. It is necessary that the common qualifying conditions as well as the group-specific conditions are  fulfilled so as to treat the provision of any such service as export of service.

1. For category 1 comprising of 18 services: the service should be provided in relation to an immovable property situated outside India.

2. For category 2 comprising of 46 services:  the service should be provided outside India, though in case the service is partly performed outside India, it shall be treated as performed outside India.

3. For category 3 comprising of services excluding sub clauses zzzo and zzzv of   S.65(105) of the Finance Act 1994, category at7.2.3 above except when the provision of taxable services specified in sub clauses d, zzzc, zzzr and zzzzm ibid does not relate to immovable property, and those specified in category at category 7.2.4 above, when provided in relation to business or commerce, it should be provided to a recipient located outside India and when not provided in relation to business or commerce it should be provided to a recipient located outside India at the time of provision of such service.