GST Calculation on Inward Remittances

1126 views 1 replies

Dear Sir,

We received an Inward remittance of USD 150000. Out of that we transferred USD 50000 in Dollar Account, USD 50000 converted using the latest exchange rate @ 74 to current account (i.e. INR 37,00,000). Rest USD 50000 we converted using the forward and paid the EPC. (i.e. USD 50000 * 75 = 37,50,000 - EPC 36,00,000 = INR 1,50,000).

The balance INR 1,50,000 transferred to current account. As per my calculation taxable amount should be as per the below.

Taxable Amount should be INR 16,450 and GST amount should be INR 2,961.

As per bank Taxable amount is INR 11,950 and GST amount is INR 2,151.

Can anyone highlight why bank calculated in this manner?

Replies (1)
There is calculation method for foreign exchange conversion. If exchange amount is exceeding 10L/- then talable value will be 5.5K + 0.1% of remaining value after deduction of 10L.

In your case Total Converted amount is: 7.45L. Remaining amount after deduction is 6.45L(7.45L-10L). Now taxable amount is 5.5K+ 6.45K( 0.1% of 6.45L) i.e: 11.95K. and Gst is 2.151K(11.95K @ 18%).

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