Cryptocurrency Q&A
What is the charge on currency exchange?
What is the charge on currency exchange?
Eleonora
Sat Oct 12 2024
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6 answers
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I am planning to travel abroad and need to exchange some currency. However, I am not sure about the charges involved in currency exchange. Could someone please explain what kind of charges or fees are typically associated with currency exchange transactions?
6 answers
Andrea
Mon Oct 14 2024
The Amount of Currency Exchanged (ACE) serves as the basis for calculating the applicable GST rate. The ACE refers to the total amount of foreign currency converted into Indian Rupees or vice versa.
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Daniele
Mon Oct 14 2024
For transactions involving up to Rs. 1 lakh in ACE, the GST rate is set at 0.18% of the ACE. This rate is designed to be minimal for small-scale currency conversions.
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Eleonora
Mon Oct 14 2024
For transactions falling within the range of Rs. 1 lakh to Rs. 10 lakh in ACE, the GST rate increases slightly. In this bracket, a flat amount of INR 180 is charged, in addition to 0.09% of the ACE, resulting in a maximum GST of INR 990.
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Lorenzo
Mon Oct 14 2024
The Slab for Service Tax on Foreign Exchange (FX) Conversion is a structured framework designed to impose a Goods and Services Tax (GST) on currency exchanges. This system ensures a fair and transparent taxation process for individuals and businesses engaged in foreign currency transactions.
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amelia_harrison_architect
Mon Oct 14 2024
For larger transactions exceeding Rs. 10 lakh in ACE, the GST rate further adjusts. A flat amount of INR 990 is charged initially, followed by 0.018% of the ACE. This structure ensures that the GST remains proportional to the size of the transaction, with a maximum GST of INR 10,800.
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