Applicability of service tax

[Ankur Poddar]

Will service tax will be attracted for L/C confirmation charges, charged by a foreign bank. Pls give related section or case laws in support of the reply.

[Surender Gupta]

This site contains statutory provisions and case laws on service tax. You need to visit the relevant parts. You may use the www.taxtmi.com to find your queries.

[Mukesh Kumar]

L/c confirmation charges charged by a foreign bank may constitute as Import of Service. The banking service is falling in third category of import of services where the recipient of services in India is liable to pay service tax on this service.

AI Summary

Import of Services: Indian recipient liable to pay service tax on foreign bank L/C confirmation charges under reverse charge.
L/C confirmation charges by a foreign bank may be treated as an import of services. Such cross border banking services are identified as taxable services supplied to a person in India, attracting the reverse/recipient liability mechanism whereby the Indian recipient must account for service tax on the imported service.