Money Matters: All About The Tax Implications Of Sending Rakhi Abroad

Raksha Bandhan is soon approaching us and will be celebrated across the world with full fervour and enthusiasm on August 30, 2023.

Since the big day is just around the corner; are you thinking about sending the ties and symbol of love to your brother across the seven continents? Don’t worry we’ve got you covered with all the financial advice you’ll need to send across a rakhi on the eve of Raksha Bandhan to your beloved brother.

Himani Chaudhary, Finfluencer and Digital Content Creator Spills The Beans On Costs Of Sending A Rakhi Abroad:

What are the tax implications of sending rakhi abroad? What should people know about it?

Sending Rakhi on Raksha Bandhan to another country will be considered as a general international courier and the costs involved will depend upon the number and type of rakhis, gifts etc you might send along, its weight, value and in which category the gift comes in ie. is it something precious or just a paperweight.

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Some costs that will be involved are :

• Shipping charges - which will depend on the country you are sending the parcel to and
• shipping carrier you choose. For example during August- IndiaPost, DTDC runs special
• discounted programs to send rakhi to your brother abroad. On an average it will take around
• ₹1000- ₹2000 for this.
• GST @18%
• Custom Duty of the host country (that will depend on country to country basis)
• Out of Delivery Area (ODA) charges. If the destination is in a remote or less accessible
• area, there could be surcharges applied.
• VAT: Again it will depend on country to country basis
• Any Custom Clearance charges or regulation charges: This might be applicable for some countries not all.

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If you send it from your business account and you have a GSTIN then you can claim the ITC.

Check Out Our Ultimate Rakhi Challenge

Stay tuned to HerZindagi for more.