The following option for determining value of supply for a person providing service in relation to purchase or sale of foreign currency & money changing:

Option A

  • WHEN ANY CURRENCY IS EXCHANGED FROM OR TO INDIAN RUPEES :
  • VALUE = (BUYING OR SELLING RATE -RBI REFERENCE RATE) X TOTAL UNITS OF CURRENCY

NOTE:

If RBI reference rate is not available

  • VALUE= 1% of Gross Amount of INR provided/received by the Money Changer
  • IF NEITHER OF THE CURRENCIES EXCHANGED IN INR
  • VALUE = 1% of Lowerof two amounts by converting any of the two currencies into INR

Option B

  • GROSS AMOUNT OF CURRENCY EXCHANGED
  • VALUE to be considered for Supply of Service

-Up to Rs.1 Lakh/- =      1% of Gross amount of Currency Exchanged, Subject to Minimum amount of Rs. 250/-.

-Greater thanRs.1 Lakh but less than 10 Lakh = Rs. 1,000 + 0.5% of Gross amount of Currency Exchanged

-Exceeding Rs.10 Lakhs = Rs. 5,000 + 0.1% of Gross amount of currency Exchanged, Subject to Maximum amount of Rs. 60,000/-.