13% Service tax on your paypal to bank transaction

I got an email from citibank today saying that from now onwards all foreign exchange transaction will attract service tax , so if you are withdrawing Rs 7000/- 1000/- will vanish as a service tax ?
Can someone confirm this?

 

Is this apply for international CT client?

 

Well I don't think so. First of all payments done from NEFT service so there is no way we can say it is foreign funds. Since Neft Service is India only. Check FAQ of RBI site for more information:
http://www.rbi.org.in/Scripts/FAQView.aspx?Id=60

 

make bank account in sbi.....
so far nothing vanished... but i do cheque withdrawl.. so i pay $5 everytime for cheque withdrawl fees.

 

The above statement is absolutely right , all banks charge the same amount of service tax but you should note one thing that NEFT payments are not done in US$ so , they can not be charged @ 13% you mentioned. Only withdrawal from cheques fall in this category ..

Each cheque Withdrawal will make you 13% poor ..

 

Thanks for the update Aju .... I was worried about it, as I am going to withdraw paypal soon to my bank.

 

Yes, as mentioned as long as you getting payment by NEFT, it will not attract 13% tax

 

Utter nonsense! Check withdrawal : fixed $5 fees, for bank transfer (NEFT) : free for >= Rs.7000 else Rs.50 only. No question of service tax as payments are in INR.

 

I think that tax is for when u spend from ur CC for a International Transaction like if u spend it in USD from ur card then it will be charged if i m not wrong...(Indian pre-paid Adwords a/c also charges this shit charges and it sucks so i stopped pre-paid and i use USD post-paid )

 

Thats not true man,only $5 will be charged in u withdraw less than 7k INR,else no fees.