According to Service Tax (Determination of Value) Rules, 2006
Rule 2B (Determination of value of service in relation to money changing):-
For a currency, when exchanged from, or to, Indian Rupees (INR), the value shall be equal to the difference in the buying rate or the selling rate as the case may be, & the RBI reference rate for that currency at that time, multiplied by the total units of currency.
Provided that in case where the RBI reference rate for a currency is not available the value shall be 1% of the gross amount of Indian Rupees provided or received, by the person changing the money:
Provided furthur that in case where neither of the currencies exchanged is Indian Rupee, the value shall be equal to 1% of the lessor of the two amts the person changing the money would have recd by converting any of the two currencies into Indian Rupee on that day at the reference rate provided by RBI.
My question is: If two currencies exchanged & for both the currencies RBI reference rate is not provided then on what value service tax is calculated. Is there any provision in the act? If yes kindly provide the detail with example.
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