Service tax Applicability of foreign exchange profit

[Asked by Guest]

Sir,

  I am a tour operator. I received USD from Foreign countries and i remit the service tax asper the receipt of USD date. But profit arises at the time of converting USD into Indian rupee. these profit is taxable or not?. or its shown as foreign exchnage profit in P&L account

AI Summary

Service tax on foreign exchange profit: conversion charges may attract service tax, gains generally treated as taxable income.
Whether foreign exchange gains on converting foreign currency receipts attract service tax or should be treated as foreign exchange profit for income-tax purposes; currency conversion charges that are billed may attract service tax, while exchange gains are ordinarily recorded as foreign exchange profit and subject to income-tax treatment.