GST Calculation on Inward Remittances

1156 views 1 replies

Dear Sir,

We received an Inward remittance of USD 150000. Out of that we transferred USD 50000 in Dollar Account, USD 50000 converted using the latest exchange rate @ 74 to current account (i.e. INR 37,00,000). Rest USD 50000 we converted using the forward and paid the EPC. (i.e. USD 50000 * 75 = 37,50,000 - EPC 36,00,000 = INR 1,50,000).

The balance INR 1,50,000 transferred to current account. As per my calculation taxable amount should be as per the below.

Taxable Amount should be INR 16,450 and GST amount should be INR 2,961.

As per bank Taxable amount is INR 11,950 and GST amount is INR 2,151.

Can anyone highlight why bank calculated in this manner?

Replies (1)
There is calculation method for foreign exchange conversion. If exchange amount is exceeding 10L/- then talable value will be 5.5K + 0.1% of remaining value after deduction of 10L.

In your case Total Converted amount is: 7.45L. Remaining amount after deduction is 6.45L(7.45L-10L). Now taxable amount is 5.5K+ 6.45K( 0.1% of 6.45L) i.e: 11.95K. and Gst is 2.151K(11.95K @ 18%).

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
13 July 2026
AVP / VP - PCG Advisory

Workforce Connect

Mumbai

MBA

View Details
Company
29 June 2026
Accountant (Finance & Compliance)

TRIEYEZ

Kolkata

CA

View Details
Company
ARTICLESHIP 16 July 2026
CA Article

Pipara & Co. LLP.

Mumbai

CA Inter

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details