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: VAT Audit :: cpt :: form 3cd :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: due date for vat payment :: empanelment :: ACCOUNTING STANDARD :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: list of goods taxed at 4%
« News Headlines »
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout
 Income-tax (27th Amendment) Rules, 2016 - 92/2016
 Announcement - Clarifications in Respect of MEF 2016-17
 Non-taxing GST apps to make filing income tax return less painful

Service tax on changing money
March, 21st 2008

In the proposed financial budget for 2008-2009, service tax will be linked to money changing activities. The same was proposed four years back.

It is unfortunate that money changing activities are linked to that of forex brokers when both activities are different in nature and kind.

Broking is definitely a service-oriented activity inasmuch as a broker provides service to two different parties and brings them together for a definite transaction.

Money changing is purely a trading/merchant-oriented activity whereas the trader buys and sells a commodity (money) for exchange against another commodity (money).

Here, value consideration takes place. Buying and selling will be at different levels and linked to market movements which will differ from day to day, hour to hour, minute to minute, and even customer to customer.

The accounting system for both the segments forex brokers and money-changers are different.

The following must also be thought of if service tax is to be made compulsory:

Money changers will definitely account the service tax on the individual who will be buying or selling foreign exchange;

will be additional cost to the buyer and seller of foreign exchange;

To get rid of the problem of additional cost, will they (buyer and seller) move to the unauthorised market once again?

This will definitely defer with the idea of Money Laundering Act.

In view of the above, it is essential that discussions are encouraged and an understanding is reached before service tax is introduced on money-changing activities.

Aspy Bharucha Ahmedabad

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

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