Foreign Remittances – The way to evade tax?

As overseas remittances continue to jump, the Comptroller and Auditor General (CAG) is concerned that the tax collections have not matched the growth in foreign exchange earnings amid fears that some of these transactions may have completely escaped the tax net due to lack of appropriate regulatory oversight.

Besides, ambiguity in the classification of incomes of foreign institutional investors (FIIs) and telecom companies have led to inconsistent tax assessments. Continue reading