Composite Rate of Tax - Money changing services - Service Tax Practice Manual / Ready Reckoner - Service Tax

Money changing services Rule 6(7B) of Service Tax Rules, 1994 Rule 6(7B) of the Service Tax Rules, 1994 , prescribes rates for composition scheme for payment of service tax involved in money changing activities. Service of purchase or sale of foreign currency, including money changing, provided by a foreign exchange broker, including an authorised dealer in foreign exchange or an authorized money changer Option to pay an amount calculated at the following rate (a ) 0.14 percent , of the gross amount of currency exchanged for an amount upto rupees 100,000, subject to the minimum amount of rupees 35 ; and (b) rupees 140 and 0.07 per cent . of the gross amount of currency exchanged for an amount of rupees exceeding rupees 100,000 and upto rupees 10,00,000; and (c) rupees 770and 0.014 per cent . of the gross amount of currency exchanged for an amount of rupees exceeding 10,00,000, subject to maximum amount of rupees 7000 The person providing the service shall exercise such option for a financial year and such option shall not be withdrawn during the remaining part of that financial year.