Forex

Service Tax on Forex Transactions
All foreign currency conversion transactions will be subject to prevalent GST rates of the Government of India with effect from 01 July 2017. Value of service in case of purchase/sale of foreign currency to be determined per table below on which GST @18% be applicable. However, such transactions amongst banks or authorised dealers or between banks and dealers are exempted and not liable to GST.

Transaction Amount Value of Service on which GST to be paid

Less than or equal to INR 1,00,000

1% of the transaction amount, subject to minimum of INR 250/- i.e. minimum GST payable is Rs. 45.

Greater than INR 1,00,000 and less than or equal to INR 10,00,000

INR 1000 + 0.5% of the transaction amount

Greater than 10,00,000

INR 5,500 + 0.1% of the transaction amount, subject to maximum of INR 60,000/-, which caps GST payable at Rs. 10,800/-.

 

Calculation of GST Chargable on Foreign Currency Purchase and Sale Amount
Amount of Foreign Purchase or sale of foreign Currency in Rupees value 2,34,000
Up to Rs. 1,00,000 1000
Rs 1,00,001 to 00, Rs 10,00,000 670
Above 1,00,000 0
Total Taxable Value 1670
GST @18% 301
CGST 9% 150
SGST 9% 150

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