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Non-Resident Indians (NRIs) will have to pay slightly more to remit money to India as the government of India has imposed a service tax on “fees or commission” levied by banks and financial institutions for facilitating remittances from abroad. The move will not pose a big burden for expatriates as a 12.36 per cent service tax is imposed only on the “fee or commission charged by banks for facilitating remittances” and not on the actual remittance. Although the previous Manmohan Singh government had made a similar move in 2012, it had to withdraw the tax proposal following widespread protests from NRIs. Service tax A circular issued by India’s Central Board of Excise and Customs (CBEC) late on Tuesday said banks and financial institutions have to pay a service tax for the fee or commission they levy for facilitating money transfers from abroad, a prominent fi...

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