Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: cpt :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: due date for vat payment :: form 3cd :: VAT Audit :: ACCOUNTING STANDARDS :: articles on VAT and GST in India
 
 
Service Tax »
  GST not to be added for TDS computation
 Getting it wrong on GST
 GST: When does a service provider need to register across multiple states?
 GST Council to examine sectoral issues in August 5 meet
 Number of taxpayers under GST set to eclipse that of previous tax regime
 Goods and Services Tax will accelerate growth,
  Central Goods and Services Tax (CGST) Rules, 2017
 Goods bought with loyalty points will face tax under GST
 substitution of Service Tax by Goods and Services Tax (GST)
 Income Tax: TDS deducted but ITR not filed? Here's what professionals need to do
 9 ways GST could impact home buyers

Financial sector to plead against service tax on remittances
November, 19th 2014

Amid an expected rise in the cost of remittance due to increase in service tax, the financial services industry plans to ask the Government to reconsider the decision.

Last month, the Central Board of Direct Taxes had issued a circular imposing a service tax of 12.36 per cent on the ‘fees or commission’ charged by financial institutions, banks or agencies engaged in the remittances business for facilitating transfer of money from abroad.

This was the reincarnation of a 2012 decision, which had been put on hold.

“It is a serious issue for the remittance industry and the NRI (non-resident Indian) diaspora. We definitely plan to send a representation to the Government on behalf of the industry,” said Kiran Shetty, Regional Vice-President – South Asia, Western Union Services.

Evaluating options

The remittance providers are evaluating options on either absorbing the cost or passing it on to customers.

“From a corporate point of view, the service tax will have an impact as we handle huge volumes and the value of remittances that run into millions of dollars on a yearly basis.

“For a high net worth individual, it would not be much as on a remittance of ?100, the impact is 12.36 per cent, which is just about 20 cents on a dollar,” Sudhesh Giriyan, Vice-President and Business Head, Xpress Money, said.

Lack of clarity
However, there is not much clarity among money transfer operators on the liability, applicability and frequency of payment of this tax, he added.

Those liable to pay may include any one or more of the following: the sender; the beneficiary in India; an operator or facilitator; and the receiving partner. The other possibility is shared fee between sender and the beneficiary, Giriyan said.

Promoth Manghat, Vice President – Global Operations, UAE Exchange, said, “We also need more clarity whether it will attract service tax on the treasury deals we do. We need to see who bears the cost but on a net basis, it will increase the cost.”

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions