Indian Bank liable for Service Tax on Bank Charges paid to Foreign Banks for Imports/Exports

Dishman Pharmaceuticals & Chemicals Ltd Vs C.S.T.-Service Tax  (CESTAT Ahmedabad) Introduction: The CESTAT Ahmedabad issued a significant ruling regarding the service tax liability of Indian banks for foreign bank charges connected to the import or export of goods. The case, Dishman Pharmaceuticals & Chemicals Ltd Vs C.S.T.-Service Tax, delves into the responsibility of Indian banks when foreign banks deduct certain charges from the proceeds of exported goods. Analysis: The crux of the case revolves around whether Indian banks are liable to pay service tax on bank charges levied by fo...