Hi All
We are a merchant exporter of chemicals. On the inward remittances we receive against our exports , the foreign bank also deducts remittance charges to the tune of US$ 100 - US$ 250 per remittance. We account for these as "Foreign bank Charges". Ofourse our Indian bank also deducts their own bank charges and they levy GST on these charges as well..,
Recently we had a GST Central Audit in our company and one of the claims by the GST team was our liability to pay GST on the Bank charges deducted by the foreign banks.
I am not sure if this is approved by law as the entity (Foreign bank) deducted the charges is not even located in India.
if it is indeed true, it is completely a useless liability for the exporter and needs to be disputed.
Can our learned friends throw some light on this matter.
CAclubindia
