We are exporting finished goods to foreign country & raising the commercial invoice in the name of foreign buyer. While receiving the payment, the foreign bank deducted some remittance amount. Whether such remitted amount is within the scope of recovery of service tax from us on reversed charge method? Whether Input service credit is eligible after payment of service credit.
Regards,
VINAY
Discussion on Reverse Charge Mechanism: No Service Tax on Foreign Bank Charges for Export Remittance. Clarification on CENVAT Credit. A discussion on a forum addresses whether service tax is applicable under the reverse charge mechanism for charges deducted by a foreign bank during remittance for exported goods. One participant suggests paying the service tax and availing of CENVAT credit to avoid litigation, while another clarifies that the deduction is a banking charge, not a commission, and does not constitute a service directly provided to the exporter. Therefore, the exporter is not required to pay service tax under the reverse charge mechanism. Additionally, there is a query about the correct effective date for a service tax category registration. (AI Summary)
TaxTMI 
TaxTMI 
