Moneychangers are persons authorized under section 7 of Foreign Exchange Management Act, to deal in foreign currency. Explanation given under Section 7 of the said Act states that 'dealing' means purchasing foreign currency in the form of notes, coins or traveller's cheques or selling foreign currency in the form of notes, coins or traveller's cheques.
Whether services provided by a money changer in relation to dealing of foreign currency buying or selling , at specified rates, without separately charging any amount as commission for such dealing, is liable to service tax as foreign exchange broking under 'banking and other financial services' [section 65 zm ]? Moneychangers are authorized by RBI to buy and sell foreign exchange at the prevalent market rates. Buying and selling of foreign exchange by such persons without separately charging any amount as commission or brokerage does not fall within the scope of foreign exchange broking and is not liable to service tax under [section 65 zm ].
Purchase or sale of foreign currency is undertaken by foreign exchange broker and also by persons authorized under Foreign Exchange Management Act, to deal in foreign exchange and having licence issued by RBI.
Such authorized persons are known as money changers or authorized dealers of foreign exchange. Services in relation to purchase or sale of foreign currency is, therefore, provided by foreign exchange broker, money changer and also authorized dealers of foreign exchange.
An explanation is being added to the effect that explicit mention of the consideration for the services provided in relation to purchase or sale of foreign currency is not relevant for the purpose of levy of service tax. Taxable services [sections 65 zzk and 65 zm ] are being amended suitably. With these amendments, services provided in relation to purchase or sale of foreign currency by a foreign exchange broker, money changer and authorised dealer of foreign exchange shall also be leviable to service tax.
As per this provision, the service provider has the option to pay service tax calculated at the rate of 0. The inter-bank transactions of purchase or sale of foreign currency, when undertaken by scheduled banks, is being exempted. T, dated refers. Scheduled banks under this notification mean the banks, which are included in the Second Schedule of the Reserve Bank of India Act, The exemption contained in this notification shall apply subject to the following conditions, namely: A "brand name" or "trade name" means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, logo, label, signature, or invented word or writing which is used in relation to such specified services for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified services and some person using such name or mark with or without any indication of the identity of that person;.
Any service which is taxable under clause of Section 65 may be exported without payment of service tax. Refer notification for details. In exercise of the powers conferred by section 93 of the Finance Act, 32 of , the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts so much of the value of all the taxable services, as is equal to the value of goods and materials sold by the service provider to the recipient of service, from the service tax leviable thereon under section 66 of the said Act, subject to condition that there is documentary proof specifically indicating the value of the said goods and materials.
All services provided by any person, for the official use of a Foreign Diplomatic Mission or Consular Post in India are exempted from service tax subject to certain conditions and procedures. All services provided by any person, for personal use of family member of Diplomatic Agents or Career Consular officers posted in a Foreign Diplomatic Mission or Consular Post in India are exempted from service tax subject to certain conditions and procedures.
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