https://www.taxtmi.com/circulars?id=53044 No service tax applies to the remitted money itself; however, Indian banks or entities acting as agents to foreign MTSOs perform intermediary services and, under the Place of Provision of Service Rules, the location of the Indian service provider determines the place of provision. Consequently, service tax is leviable on commission or fee received by Indian agents from MTSOs. Separately charged delivery fees to beneficiaries in India and currency conversion services performed in India are taxable; sub-agents are similarly intermediaries liable to service tax. This circular supersedes the earlier clarification dated 10 July 2012. en-us Tue, 14 Oct 2014 00:00:00 +0530 Sat, 02 May 2015 16:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=53044 No service tax applies to the remitted money itself; however, Indian banks or entities acting as agents to foreign MTSOs perform intermediary services and, under the Place of Provision of Service Rules, the location of the Indian service provider determines the place of provision. Consequently, service tax is leviable on commission or fee received by Indian agents from MTSOs. Separately charged delivery fees to beneficiaries in India and currency conversion services performed in India are taxable; sub-agents are similarly intermediaries liable to service tax. This circular supersedes the earlier clarification dated 10 July 2012. Circulars Service Tax Tue, 14 Oct 2014 00:00:00 +0530 https://www.taxtmi.com/circulars?id=53044