Correct time to deposit service tax & Applicability of exchange rate

[Guest]

Our company is 100% subsidiart of Brussels base company. Our parent company directly received the payment in EURO from Gail on Which we have to deposit the Service tax. we want to know at which time we Have to deposit the Service tax i.e on receipt of payment in Brussels and what exchange rate we have to apply TT buying rate or TT selling rate.

[Ravi Chopra]

You should calculate the service tax liabity on the receipt in foreign exchange on the same amount and rate as applied by your bank while giving credit in your account.

AI Summary

Service tax on foreign receipts must be deposited using the bank-applied exchange rate when funds are credited. Service tax liability on payments received in foreign currency arises on receipt and must be calculated using the same amount and exchange rate the bank applies when crediting the company's account, rather than independently selecting TT buying or selling rates.