Reverse charge on foreign bank processing fees: Indian banks must remit service tax as recipients under law. Foreign banks' commissions and processing charges for forwarding import/export documents and realisation of proceeds are services provided to the Indian bank that corresponds with the foreign bank; the Indian bank, being the recipient under the implied contractual regime created by international banking rules, is liable to discharge service tax under the reverse charge/recipient liability mechanism and must comply, including for past periods.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Reverse charge on foreign bank processing fees: Indian banks must remit service tax as recipients under law.
Foreign banks' commissions and processing charges for forwarding import/export documents and realisation of proceeds are services provided to the Indian bank that corresponds with the foreign bank; the Indian bank, being the recipient under the implied contractual regime created by international banking rules, is liable to discharge service tax under the reverse charge/recipient liability mechanism and must comply, including for past periods.
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