Finance Act 2008 requires Service Tax to be levying on purchase or sale of foreign currencies including transactions by authorised dealers in India. Most Banks charges currency conversion fees plus service tax for foreign purchases, so do ICICI Bank, Citi bank, HDFC Bank etc.
Here are the foreign exchange conversion charges (currency conversion fees) charged by major banks including ICICI, HDFC, ICICI etc.
ICICI Foreign Exchange Conversion Charges
- ICICI Bank Charges Rs.25 (Inclusive charge of Rs.22.25 and service tax @ 12.36% of Rs.2.75) as foreign exchange conversion charges for all forex sale and purchase transactions.
This charge is for per transaction.
HDFC Foreign Exchange Conversion Charges
- HDFC Bank charges Rs. 22.66/- per transaction (plus 12.36% service tax and education cess) for all forex sale (unless specified separately).
- For inward remittances HDFC Charges Rs. 90.66 (plus service tax and education cess) as foreign exchange conversion fees.
- Citi Bank charges a flat fee of Rs 56.18 ( Rs 50 plus service tax of 12.36% ) for every transaction involving sale or purchase of foreign currency in India.