Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get 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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TDS :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: VAT Audit :: VAT RATES :: form 3cd :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: empanelment :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
Service Tax »
 Further clarification to Circular No. 1/2017 - GST dated 21st July, 2017.
 GST Return Filing: How to handle discounts and additional cost
 GST base looks set to be at least 25% wider than earlier tax regime
 Businesses struggle with multiple tax rates, returns
 Common use items exempt from e-way bill provision under GST
 Goods And Services Tax Sends Taxes Racing
 How GST lesson can unleash untapped potential of education sector in India
 Services sector PMI falls most in 4 years on GST
 Missing column in GSTR 3B form leaves input claims a shaky edifice
  Communication to the Central Excise/Service Tax Taxpayers on migration to GST
 GST not easy to implement but tax base expansion will benefit all

Bank profits may be hit by service tax
June, 02nd 2008

All forex transactions have gotten costlier by about Rs 100, because of the imposition of service tax. However, the bigger problem for banks is paying service tax on all interbank foreign exchange transactions. This could wipe out profits.

 You may not have noticed it but you are perhaps paying a little more every time you buy from or sell foreign currency to a bank. That is because service tax has been imposed on all your foreign exchange transactions. Several banks have started levying a flat fee of Rs 112.36 on all forex services from May 16.

 Under the new rules, banks will be taxed 0.25% of all forex amount transacted, or 12.36% of the fee they charge on forex transactions.

 This is an option given to the bank. If it knows the value or if it wants to ascribe a value to this particular activity, it is open to the bank or an entity given to ascribe a value and pay an applicable service tax at an applicable rate i.e 12.36%, said Uday Pimprikar, Associate Director, E&Y.

 The big problem for banks is that they have to pay this 0.25% tax on their inter-bank forex transactions as well as transactions with the RBI.  The Indian Banks' Association is meeting the central board of excise and customs next week to reconsider this clause.

 There are certain operational issues arising out of this which we are discussing. We are going to hold a meeting next week and whatever loose ends are available, we will try and sort it out, said H Sinor, Chief Executive, Indian Banks Association.

 Bankers point out that daily transaction in the market amount to USD 33 billion. In 240 working days, this will be USD 7.9 trillion and 0.25% of this will amount to USD 20 billion in service tax. That is a figure that can wipe out half the oil subsidy as well as the profits of all the banks. So, it looks like a rethink of this clause should come soon.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

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