Dear expert
We have received bills from shipping line company for recovering manifest charges. They have issue bill in
Dollar and they are registered under service tax. They have charged service tax (in Dollar).
my query is: 1. whether service provider can issue invoice in dollar? if yes then whether we can avail CENVAT on these invoices
Shipping Line Can Issue Invoices in Dollars if Contract Allows; Use Bi-Monthly Exchange Rate for CENVAT Credit. A query was raised regarding the issuance of service tax invoices in dollars by a shipping line company for manifest charges. The main concern was whether invoices could be issued in foreign currency and if CENVAT credit could be availed on such invoices. An expert confirmed that invoices can be issued in foreign currency if the contract specifies it, advising to include the exchange rate for service tax calculations. Another expert suggested using the exchange rate disclosed bi-monthly by the Central Government for conversion purposes, allowing for proper accounting and CENVAT credit utilization. (AI Summary)
TaxTMI 
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