Payment of service tax on reversed charge method -Reg

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....ayment of service tax on reversed charge method -Reg<br> Query (Issue) Started By: - vinay wakde Dated:- 14-3-2012 Last Reply Date:- 24-3-2012 Service Tax<br>Got 3 Replies<br>Service Tax<br>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 remi....

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....tted 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 Reply By Pradeep Khatri: The Reply: You may pay the service tax and avail the CENVAT credit on Input Services to avoid any litigation. But deduction of charges by foreign bank from foreign remittance against suppl....

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....y of goods does not tentamount to any services provided by the foreign bank, directly to you. Reply By vinay wakde: The Reply: We have add new catagory of Service "Bank and other Financial Service" in our existing Service Tax Registration certificate for payment of service tax on reverse charged method. We are paying the Service Tax w.e.f. 16.05.2008 till date. Kindly confirm effective date i.e.....

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.... 16.05.2008 is correct for above catagory of service. Regards, VINAY Reply By Rishabh Gugale: The Reply: Dear Vinay, In my opinion, the foreign bank has remitted the money to your Indian Bank and the amount charged is the Banking Charges and not Commission. Since it is inter bank transaction at present it is the service provided and recieved within two banks. The exporter is not required to p....

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....ay service tax under reverse charge mechanism. Regards Narendra<br> Discussion Forum - Knowledge Sharing ....