No Tax on NRI Remittance: Central Govt Clarifies
Daijiworld Media Network
New Delhi, Jul 23: For some time there have been reports in the section of the media alleging that the union government proposes to charge a 12.36% service tax on the fees paid by NRIs remitting money to their country.
Now it is officially confirmed that no such tax will be imposed.
A few organizations in the Gulf and other parts of the world had expressed their displeasure over this move of the union government, and protested by sending letters to the prime minister's office.
The minister for Indian overseas affairs Vayalar Ravi had taken up this issue to the prime minister, and now Parwez Dewan, secretary, OIA, has sent a circular, dated July 11, 2012 stating that there there will be no service tax on mere transaction in money or remittance of foreigner currency to India from outside by an NRI or any other person.
Daijiworld is in possession of a copy of letter from Parwez Dewan.