TaxTMI 
TaxTMI 
Rate of Exchange - Section 67A
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....ate of Exchange - Section 67A<br> Query (Issue) Started By: - Sanjeev Sharma Dated:- 29-6-2012 Last Reply Date:- 11-7-2012 Service Tax<br>Got 1 Reply<br>Service Tax<br>A Company has entered into an a....
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....greement with a foreign company on 25th June 2012 to provide certain services, for which monthly invoice will be raised (IN USD) on first day of following month. This agreement is for calender year 20....
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....12. As per Section 67A, rate of exchange will be the rate in force at the time of service provided or agreed to be provided. So in the above case whether rate of exchange of 25th June 2012( date of ....
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....agreement) will be used for whole of the service period or the rate on the date of invoice will be exchange rate. Reply By Surender Gupta: The Reply: Since the agreement in question is for continuou....
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....s services and for which monthly Invoice is required to be issued, the rate of foreign exchange would be as applicable on the date of Invoice. However, in case advance is received, than rate of exchan....
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....ge is as applicable on the date of receipt of advance. Here, the term agreed to the provided is not to be taken as date of agreement for future services for neither invoice has been raised nor any pa....
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....yment has been received. In my view Provisions of section 67A are required to be read with POT rules, 2011 as amended.<br> Discussion Forum - Knowledge Sharing ....