Friday, 17 October 2014

CBEC circular clarifies that services provided by Indian Banks/Entities acting as agents to off-shore Money Transfer Service Operators (MTSO) would attract Service tax



This Tax Alert summarizes the CBEC's Circular No. 180/06/2014 – ST dated 14 October 2014 (Circular) issued by the TRU that discusses Service tax applicability on activities surrounding inward remittances received from abroad to beneficiaries in India through Money Transfer Service Operators (MTSO) and the commission or fees received by agents / sub-agents appointed in India in this regard.

Circular clarifies that commission, fee or charges for services provided by Indian Banks/Entities acting as agents or sub-agents would attract Service tax.


Possibility of retrospective application of the said Circular by the revenue authorities to raise Service tax demands is not ruled out.

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