Latest Expert Exchange Queries
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: Central Excise rule to resale the machines to a new company :: form 3cd :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: TDS :: cpt :: due date for vat payment :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: empanelment :: ACCOUNTING STANDARDS :: list of goods taxed at 4%
 
 
Service Tax »
 All you want to know in 5 brief points
 GST loss to be reduced by slice of service tax
 Government encouraging self-registration for GST
 Spl assembly session on GST Bill on May 9
  Getting the trade to align with GST is a challenge
 Getting the trade to align with GST is a challenge
 With GST launch, race against time to avoid sales tax upheaval across India
 GST to rate taxpayers, businesses on payment record, make ratings public
 7 major benefits of Goods and Services Tax
 100 Opening GST Profiles- Indirect Taxation- ALL Industries
 New Opening Sr. Manager-Indirect Tax For A Leading Power Company

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