Currency Conversion Charges not liable to service tax – CESTAT

CA Urvashi Porwal Brief of the Case In the case of Citibank N.A. Versus Commissioner of Service Tax, Chennai, it was held that Currency Conversion Charges (mark up) in respect of credit/debit card transactions are not liable to service tax as the card transaction happened outside India. Facts of the Case The appellant is Citi Bank engaged in providing banking service registered with service tax for discharging service tax on their banking operations and also credit card/debit card services. The DGCEI issued SCN No.68/2007 dt. 18.10.2007 demanding service tax of Rs.5,12,64,532/- payable on the...