https://www.taxtmi.com/caselaws?id=795962 Foreign-bank charges deducted from export proceeds do not constitute consideration for services received by an Indian exporter where the foreign bank provides letter-of-credit and remittance services to its overseas buyer-client. The exporter has no direct contractual or service-recipient relationship with the foreign bank and receives relevant banking services from its Indian banker when export documents are negotiated. As the foreign service provider and its recipient are outside the taxable territory, foreign-currency remittance and deductions retained by the foreign bank do not establish a taxable service received in India. Accordingly, the exporter is not liable to service tax under the reverse charge mechanism. en-us Mon, 20 Jul 2026 00:00:00 +0530 Thu, 30 Jul 2026 08:52:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795962 Foreign-bank charges deducted from export proceeds do not constitute consideration for services received by an Indian exporter where the foreign bank provides letter-of-credit and remittance services to its overseas buyer-client. The exporter has no direct contractual or service-recipient relationship with the foreign bank and receives relevant banking services from its Indian banker when export documents are negotiated. As the foreign service provider and its recipient are outside the taxable territory, foreign-currency remittance and deductions retained by the foreign bank do not establish a taxable service received in India. Accordingly, the exporter is not liable to service tax under the reverse charge mechanism. Case-Laws Service Tax Mon, 20 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795962