Service tax applicability on foreign receipts

[Sunil K. Jain]

what is the taxablity of service tax, on foreign currency receipts in india,on coaching, being providee in India to non residents.

[Prabhakar Vennalaganti]

The leviability of service tax is not based on from where the payment recived. If taxable service as defined under serevice tax act/rules is rendered in India it is taxable.Ofcourse the exemptions if any is to be considered while determing the taxability / leviability.

Once non-residents are in India while receiving services of coaching provided to them, by mere fact that amount is received in foreign currency can not make the services exempt for service tax. The condition that services must be used outside India is seems to be not complied. However the same issue may be subject to different interpretation.

AI Summary

Service tax on foreign currency receipts applies when coaching services are rendered in India to non residents.
Service tax liability turns on whether a service is defined as taxable and is rendered in India, not on the currency in which payment is received; foreign currency receipts for coaching provided in India to non residents do not automatically remove the service from the charge to service tax, and applicable exemptions must be considered.