An IndianTour & Travelling Company raises invoice in Foreign currency & receives money in foreign currency only to provide services in India. Will service tax liable on that?
kamal kishor sen (STUDENT Rajasthan) 06 August 2011
Yes i think services provided in India is liable for service tax.
Wait for experts.....
C.A. Parin Poojara (Chartered Accountant) 06 August 2011
Yeah ofcorse service tax should be leviable irrespective of mode of consideration. In case there's any difficulty to derive consideration in indian money value then valuation should be done as per Service Tax (Determination of value) Rules,2006.
Nitin Grover (CS) 07 August 2011
Yes its chageable because manner of consideration doesnt matter.
CA Rashaad Meer (...) 07 August 2011
Yes The Company Is Liable To Pay Service Tax, Coz Service Is Rendered In India...
%$ anil ....article trainee (help ever fnd forever) 07 August 2011
its mandatory becaz services rendered in india .....so have 2 pay must
Sujit RN (Chartered Accountant) 07 August 2011
Tour and travel services fall under clause (ii) of Rule 3(1) of the Export of Service Rules, 2005, meaning that these services are performance based.
In your case, if it is clear that services are wholly performed in India, the services would not classify as 'export of service' and therefore, would be liable to Service Tax.
Subhash (CA Final ) 09 August 2011
any taxable service provided in india is taxable
irrespecive of invoice raised in home or foreign currecy
as per your question, service proved in india. so it is taxble
Ashvin Bhanderi (ACCOUNTANT) 09 August 2011
Samik Roy (Accounts Executive) 10 August 2011
Definitely as an Indian Company or Firm liable pay Service Tax in Indian Government.