Does inward foreign remittance in NRE account from abroad by NRI employed and residing abroad, attracts service tax. Is it covered by Money Transaoction which is exempted from service tax. Is there any notification exempting such transaction from service tax?
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Service tax on foreign in word remitance
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NRE accounts have INR balance. Only FCNR account has FC balance.
Hence, In case Foreign inward remittance in NRE account, the credit will be converted into INR.
Transaction in Money shall not include conversion of money from one currency into another u/s 66B. So, Foreign inward remittance in NRE account are taxable. As per section 66D(n), if it is within Banks or authorised dealers then it is not taxable. But when any of the parties are public, then it is taxable.
Please correct me if m wrong.
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