Service tax Applicability of foreign exchange profit

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..... Service tax Applicability of foreign exchange profit
Query (Issue) Started By: - Joycee Joseph Dated:- 29-2-2012 Last Reply Date:- 5-3-2012 Service Tax
Got 5 Replies
Service Tax
Sir, I am a tour operator. I received USD from Foreign countries and i remit the service tax asper the receipt of USD date. But profit arises at the time of converting USD into Indian rupee. these profit is .....

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..... taxable or not?. or its shown as foreign exchnage profit in P&L account Reply By Vivek Harsh: The Reply: In my view Service tax liability may arise. Reply By Naveed S: The Reply: My personal view is that Profit is surely taxable; but not under any Service tax head as no Services provided/received herein. Any Chartered Acccountant may please advise under which heading the same can exactly an .....

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..... d properly be shown in the Balance Sheet/P & L Account.. Reply By Pradeep Khatri: The Reply: No service tax will be applicable on the profit amount. But on currency conversion charges service tax will be applicable. Reply By Dilip Darji: The Reply: Dear sir. You might have earned something towards Currency Conversion Cgharges but you did not sent any Invoice/bill to your customer and therefor .....

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..... e there is no question of making payment of Service Tax on profit eared on converson of currency. Service Tax is on service provided and not on the profit earned.You may have to pay Income tax on such profit but not the Service Tax. Reply By Naveed S: The Reply: Thanks a lot Mr. Dilipji for your views on the query...
Discussion Forum - Knowledge Sharing .....

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