Composition scheme for payment of tax on exchange of foreign currency :
A person supplying the services may exercise option to ascertain value in terms of rule 6(2)(b) for a financial year and such option shall not be withdrawn during the remaining part of that financial year – third proviso to rule 6(2) of Valuation Rules.
The optional scheme under rule 6(2)(b) of Valuation Rules is as follows –
At the option of supplier of services, the value in relation to supply of foreign currency, including money changing, shall be deemed to be
(i) one per cent of the gross amount of currency exchanged for an amount up to one lakh rupees, subject to a minimum amount of two hundred and fifty rupees.
(ii) one thousand rupees and half of a per cent of the gross amount of currency exchanged for an amount exceeding one lakh rupees and up to ten lakh rupees; and
(iii) five thousand rupees and one tenth of a per cent of the gross amount of currency exchanged for an amount exceeding ten lakh rupees, subject to maximum amount of sixty thousand rupees.