Service Tax on Remittances to India imposed

remittanceThe Government of India has imposed a service tax on Indian banks on the commissions they earn for facilitating money transfers from abroad. Though not confirmed by banks it appears that a nominal amount of INR 100 may be deducted from the remittances made as service tax.

So next time you send 50,000 INR you may only get credited 49,900 which doesn’t appear so imposing but adds to the AED 20 that you already pay here each time you remit to your bank. A similar tax was withdrawn in 2012 after NRI protested, so perhaps its time to send in your protest again.

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