உங்கள் கவனத்திற்கு.... வரி எதுக்குன்னு இதுல கொஞ்சம் தெளிவா இருக்குன்னு நினைக்கிறேன்...! Abu Dhabi: Non-Resident Indians (NRIs) will have to pay slightly more to remit money to India as the government of India has imposed a service tax on “fees or commission” levied by banks and financial institutions for facilitating remittances from abroad. The move will not pose a big burden for expatriates as a 12.36 per cent service tax is imposed only on the “fee or commission charged by banks for facilitating remittances” and not on the actual remittance. Although the previous Manmohan Singh government had made a similar move in 2012, it had to withdraw the tax proposal following widespread protests from NRIs. Service tax A circular issued by India’s Central Board of Excise and Customs (CBEC) late on Tuesday said banks and financial institutions have to pay a service tax for the fee or commission they levy for facilitating money transfers from abroad, a prominent financial consultant in Mumbai told Gulf News by phone on Wednesday. Although the service tax is imposed on banks and financial institutions, they will not pay it from their own pocket but will pass it on to customers, said Sachin Menon, chief operating officer, tax and regulatory services at KPMG in Mumbai, a prominent financial advisory in India. Although he did not know the exact fee or commission charged by Indian banks and financial institutions on NRI remittances, he said the banks can deduct that amount from the remittances. But banking sources told Gulf News that the tax may be around Rs100 (Dh5.98). Currently money exchange centres in the UAE charge a flat fee of Dh20 for a single transaction of money remittance to India. Once the new tax is levied, it is not clear whether NRIs have to pay the additional amount in the UAE or in India. Menon said although the amount is small, it will affect the majority of the NRIs who are low-income workers. Even a small deduction will affect the small amounts they regularly remit home.
Posted on: Sun, 26 Oct 2014 17:14:16 +0000
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