No Service Tax on Foreign Remittances

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..... No Service Tax on Foreign Remittances
By: - Meenu Garg
Service Tax
Dated:- 4-8-2012

The clarification follows concerns over reports that there was a move to levy 12 per cent tax on money sent back home by Indians abroad under the changed service tax regime from July 1,2012. CBEC's clarification via Circular No. 163/14/2012 -ST dated July 10, 2012 clarified '' there is no service t .....

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..... ax per se on the amount of foreign currency remitted to India from overseas ''. That is NRI will not be charged with any service tax on money transfer services provided to them by Banks or Financial Institution's abroad or Indian counterpart bank or financial institution for any fund transfer. When there is transfer of funds to India from abroad, For the Banks or Financial Institution located ou .....

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..... tside India they do not fall in the ambit of service tax as in terms of the Place of Provision of Services Rules, 2012, such services are deemed to be provided outside India and thus not liable to service tax in case any fee or conversion charges are levied for sending such money. And for Banks or Financial Institution in India who charges the foreign bank or any other entity for the services pro .....

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..... vided at the receiving end, in terms of Rule 3 of the Place of Provision of Services Rules, 2012, even they are also not liable to service tax. Reply By Rakesh Chitkara as = Will there be levied any service tax on any entity in India for this inward remittance : for instance the Bank which receives the money from say Western Union Money Transfer and then disburses it to the ultimate recipient, .....

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..... or the agent in India or the sub-agents in India ? Dated: 6-8-2012
Scholarly articles for knowledge sharing by authors, experts, professionals .....

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