Our importer purchases goods from us and our terms are that we have to bear the bank charges on the open account transactions. Our local bank deducts its charges from the proceeds in Indian Rupees and charges service tax on it. Can refund be claimed on this service tax. If so, any particular circular or notification?
The next question is on the charges deducted by Foreign Banks.On a typical bill of USD5000 following charges are deducted:-
1) Variance fee minimum US$90 (this appears to be the commission of the foreign bank)
2) Courier fee of USD 20 (for sending us presentment instructions)
3) SWIFT / Telex: USD 20 For communication regarding acceptance of bill and payment.
4) FEDWIRE: USD 20 for using the Fedwire service to transfer payment to our Bank's account in USA.
In addition to these deductions, it seems our bank's banker in USA charges USD15 (we do not have data for this as it is automatically deducted from the proceeds and balance amount is credited to us)
Even though this is export bill, do we have to pay service tax as recepient of service?
If so can we claim a refund or exemption. Any notifications / circulars?
CAclubindia
