No clarity on tax on remittances

Even as the rupee firmed up today on strong signals from the prime minister about definite measures to improve the economy, experts remain sceptical and prefer toadopt a wait and watch policy.And now the decision to impose 12.36 per cent service tax on remittances to India by NRIs with effect from July 1 has generated tremendous resentment across Kerala.Forex dealers argue that this was a short-sighted measure which risked diverting remittances to hawala channels and tempting otherwise law-abiding citizens toindulge in undesirable malpractices.Sudhir Kumar Shetty, COO, Global Operations of UAE Money Exchange speaking exclusively to nnis said, if the country wanted a steady inflow of dollars, it needed togive a positive signal to the world.