{"id":21646,"date":"2012-07-10T16:35:35","date_gmt":"2012-07-10T11:05:35","guid":{"rendered":"https:\/\/www.legalindia.in\/news\/?p=21646"},"modified":"2012-07-10T16:35:35","modified_gmt":"2012-07-10T11:05:35","slug":"finmin-no-service-tax-on-nri-remittances","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/news\/finmin-no-service-tax-on-nri-remittances","title":{"rendered":"FinMin: No service tax on NRI remittances"},"content":{"rendered":"<p>The Government today said remittances from abroad will not attract <span style=\"color: #800000;text-decoration: underline\"><strong>service tax<\/strong><\/span>, putting to rest the concerns raised in view of new tax norms.<\/p>\n<p><span style=\"text-decoration: underline\"><em>\u201cThe matter has been examined and it is clarified that there is no service tax per se on the amount of foreign currency remitted to India from overseas<\/em><\/span>,\u201d the <span style=\"color: #800000;text-decoration: underline\"><strong>Central Board of Excise and Customs (CBEC)<\/strong><\/span> said.<\/p>\n<p>The clarification follows concerns over reports that there was a move to levy 12 per cent tax on money sent back home by Indians abroad under the changed service tax regime from July 1.<\/p>\n<p>Emerging as the top recipient among developing nations, India received remittances of $64 billion in 2011, according to the World Bank data.<\/p>\n<p><span style=\"color: #800000;text-decoration: underline\"><strong>Chief Ministers of Punjab and Kerala<\/strong><\/span>, which are among the states receiving the largest remittances from expatriates, had taken up the matter with the Prime Minister, <span style=\"color: #800000;text-decoration: underline\"><strong>Dr Manmohan Singh<\/strong><\/span>.<\/p>\n<p>CBEC said, \u201c<span style=\"text-decoration: underline\"><em>Concerns have been expressed in various fora regarding the leviability of service tax on the remittance of foreign currency in India from overseas.\u201d<\/em><\/span><\/p>\n<p>It added, \u201c<span style=\"text-decoration: underline\"><em>remittance comprises money, the activity does not comprise a \u2018service\u2019 and thus not subjected to service tax<\/em><\/span>.\u201d<\/p>\n<p>In case any fee or conversion charges are levied for sending such money, they are also not liable to service tax as the person sending the money and the company conducting the remittance are located outside India, the circular issued by the Board said.<\/p>\n<p>The CBEC further clarified that Indian bank or financial institution which charge the foreign bank for the services provided at the receiving end, is not liable to service tax.<\/p>\n<p>Kerala, Punjab, Tamil Nadu and Andhra Pradesh have maximum number of emigrants mostly in the Gulf.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Government today said remittances from abroad will not attract service tax, putting to rest the concerns raised in view of new tax norms. \u201cThe matter has been examined and it is clarified that there is no service tax per se on the amount of foreign currency remitted to India from overseas,\u201d the Central Board [&hellip;]<\/p>\n","protected":false},"author":21,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[1913,10189,10188,7325,302,2064,10190,2155,1733,10187,2499,399],"class_list":["post-21646","post","type-post","status-publish","format-standard","hentry","category-top-law-news","tag-andhra-pradesh","tag-cbec","tag-central-board-of-excise-and-customs","tag-dr-manmohan-singh","tag-kerala","tag-manmohan-singh","tag-prime-minister-dr-manmohan-singh","tag-prime-minister-manmohan-singh","tag-punjab","tag-remmittance-of-nri-from-service-tax","tag-service-tax","tag-tamil-nadu"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FinMin: No service tax on NRI remittances - Legal News India - Supreme Court &amp; High Court Updates<\/title>\n<meta name=\"description\" content=\"The Government today said remittances from abroad will not attract service tax, putting to rest the concerns raised in view of new tax norms. \u201cThe matter - Get the latest legal news from the Supreme Court, High Courts, and government. 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The Central Board of Direct Taxes (CBDT) issued the draft guidelines inviting comments and suggestions\u2026","rel":"","context":"In &quot;Top Law News&quot;","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":21370,"url":"https:\/\/www.legalindia.com\/news\/most-services-come-tax-net-tomorrow","url_meta":{"origin":21646,"position":3},"title":"Most of the services to come under tax net from tomorrow","author":"Legal India Admin","date":"June 30, 2012","format":false,"excerpt":"Services to come under tax net from tomorrow All services will come under tax net from tomorrow on except those which are in the negative list with the implementation of the new service tax regime. With the exception of 38 services, which figure in the negative list, all other activities\u2026","rel":"","context":"In &quot;Top Law News&quot;","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.legalindia.in\/news\/wp-content\/uploads\/2012\/06\/Income-Tax--150x112.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":10174,"url":"https:\/\/www.legalindia.com\/news\/baba-ramdev-to-launch-satyagraha-against-graft","url_meta":{"origin":21646,"position":4},"title":"Baba Ramdev to launch satyagraha against graft","author":"Legal India Admin","date":"April 21, 2011","format":false,"excerpt":"Yoga guru and spiritual leader Baba Ramdev will launch a nationwide people\u2019s movement \u2018Satyagraha against corruption\u2019 from June 4, his spokesperson said here Wednesday. \u2018The movement will begin after he completes his \u2018Bharat Swabhiman Yatra\u2019, a journey of one lakh km which began from Dwarka on September 2 last year\u2026","rel":"","context":"In &quot;Media &amp; Entertainment News&quot;","block_context":{"text":"Media &amp; Entertainment News","link":"https:\/\/www.legalindia.com\/news\/category\/media-entertainment-news"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.legalindia.in\/news\/wp-content\/uploads\/2011\/04\/Baba-Ramdev.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":19565,"url":"https:\/\/www.legalindia.com\/news\/vodafone-serves-notice-to-government-on-tax-proposal","url_meta":{"origin":21646,"position":5},"title":"Vodafone serves notice to government on tax proposal","author":"Legal India Admin","date":"April 18, 2012","format":false,"excerpt":"The Vodafone Group has served a 'dispute notice' on the Centre, the first step before it begins international arbitration proceedings under the India-Netherlands bilateral investment treaty against the government's controversial move to tax the company's acquisition of Hutchison Essar in 2007. This is the first formal action initiated by the\u2026","rel":"","context":"In &quot;Top Law News&quot;","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_shortlink":"https:\/\/wp.me\/p6H5Bf-5D8","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/posts\/21646","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/comments?post=21646"}],"version-history":[{"count":0,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/posts\/21646\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/media?parent=21646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/categories?post=21646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/tags?post=21646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}