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No service tax on NRI remittances
August, 23rd 2012

There's some good news for NRIs as the central government has decided not to charge the proposed service tax on their overseas remittances.

A communique to this effect has been received by the commissioner for NRI affairs, Wilfred Mesquita, from by the Union minister of state for finance S S Palanimanickam.

The Union finance ministry had earlier proposed to impose 12.36% service tax on NRIs' remittances. The proposal had generated resentment among Goans, particularly those employed abroad.

The commissioner for NRI affairs had taken up the matter with Prime minister Manmohan Singh for review of the decision to levy service tax.

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