No clarity on tax on remittances

UPDATED ON JUN 29, 2012 01:18 AM IST
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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.


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