Current Affairs

No service tax on NRI Remittances: GoI

The Government of India (GoI) upon reconsideration to impose 12.36 per cent service tax on remittances by NRI’s, has now decided that no such service tax will be charged on the amount of foreign currency remitted to India from overseas. A clarification to this effect has been received by the Commissioner NRI Affairs from S. S. Palanimanickam, Union Minister of State for Finance vide has letter dated 08/08/2012 along with a circular issued to this effect to all revenue authorities in India.

The Commissioner for NRI Affairs, Dr. Wilfred Mesquita had  taken up the matter with the Prime Minister of India  for review of the decision to levy service tax on remittances by NRIs.

The reported decision of  the Union Ministry of Finance to impost 12.36 per cent service tax on remittances by NRIs had generated tremendous resentment among the Goan public in general and the overseas Goan community in particular. This is because most of the families of Goans who are employed in the Gulf on lowly paid jobs, depend upon their remittances to support the household and education to their children

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