https://www.taxtmi.com/caselaws?id=763368 Service tax under reverse charge does not arise on overseas payment-processing arrangements unless the exporter is shown to be the contractual recipient of the service for consideration in the taxable territory. Where the foreign entity was engaged by the overseas buyer to remit export proceeds, the exporter was not treated as the recipient and no tax liability arose. Charges deducted by foreign banks during remittance of export proceeds were likewise treated as a bank-to-bank money transaction, not a taxable service rendered to the exporter. On that basis, the demand for service tax, interest and penalties was set aside. en-us Tue, 17 Dec 2024 00:00:00 +0530 Wed, 18 Dec 2024 16:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763368 Service tax under reverse charge does not arise on overseas payment-processing arrangements unless the exporter is shown to be the contractual recipient of the service for consideration in the taxable territory. Where the foreign entity was engaged by the overseas buyer to remit export proceeds, the exporter was not treated as the recipient and no tax liability arose. Charges deducted by foreign banks during remittance of export proceeds were likewise treated as a bank-to-bank money transaction, not a taxable service rendered to the exporter. On that basis, the demand for service tax, interest and penalties was set aside. Case-Laws Service Tax Tue, 17 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763368