A relief for NRIs: Remittances NOT to be taxed

 

The Central Board of Excise and Customs (CBEC) yesterday issued a clarification saying remittance of foreign currency to India from overseas will not be levied service tax. This surely comes as a relief for NRIs sending money home, as it ends days of speculation on whether their money sent home would be liable for tax.

 

“The matter has been examined and it is clarified that there is no service tax per se on the amount of foreign currency remitted to India from overseas,” the CBEC circular said. The negative list released earlier had excluded money transactions. The CBEC said, “As the amount of remittance comprises money, the activity does not comprise a ‘service’ and thus not subjected to service tax.”

It added that in case any fee or conversion charges are levied for sending such money, they are also not liable to service tax as the person sending the money and the company conducting the remittance are located outsideIndia. “In terms of the Place of Provision of Services Rules, 2012, such services are deemed to be provided outsideIndia and thus not liable to service tax,” CBEC said.

One Response to A relief for NRIs: Remittances NOT to be taxed

  1. RATAN says:

    ITS REALLY GREAT RELIEF FOR NRI WHO ARE SENDING THE MONEY TO INDIA FOR THEIR
    FAMILIES FOR DAY TO DAY REQUIREMENTS,A IT IS WE ARE GIVING THE CHARGES TO REMITTED TO OUR INDIAN ACCOUNT TO COMPANY THOSE WHO SENDING OUR MONEY TO INDIA

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