Credit card purchases made abroad will not attract TCS's interest.

The Union finance ministry disclosed on Wednesday that the TCS rate remains unchanged for amounts up to 7 lakhs per individual per year for all purposes under the Liberalized Remittance Scheme (LRS) and for overseas travel tour packages, regardless of the mode of payment. Credit card purchases made while travelling internationally will not be included in the LRS & will not be subject to TCS.Read also this: Reportedly costing India’s economy $1.9 billion, Internet shutdowns in Manipur and Punjab The delay in enforcing the new TCS rates is another policy decision made by the administration. On May 16, the government included international credit card purchases within LRS, meaning that beginning on July 1, a 20% tax would be applied to all international credit card purchases. LRS previously supported the use of debit cards for purchases. Some have even called the decision to tax TCS “tax terrorism,” highlighting the widespread level of opposition to the measure. A su

By mediology 05:00 PM Jun 29, 2023 IST

The Union finance
ministry disclosed on Wednesday that the TCS rate remains unchanged for amounts
up to 7 lakhs per individual per year for all purposes under the Liberalized
Remittance Scheme (LRS) and for overseas travel tour packages, regardless of
the mode of payment. Credit card purchases made while travelling
internationally will not be included in the LRS & will not be subject to
TCS.

Read also this: Reportedly costing India’s economy $1.9 billion, Internet shutdowns in Manipur and Punjab

The delay in enforcing
the new TCS rates is another policy decision made by the administration. On May 16, the
government included international credit card purchases within LRS, meaning
that beginning on July 1, a 20% tax would be applied to all international
credit card purchases. LRS previously supported the use of debit cards for
purchases. Some have even called the decision to tax TCS “tax
terrorism,” highlighting the widespread level of opposition to the
measure.

A subsequent government
announcement clarified that no TCS would be withheld for purchases of up to 7
lakh made with any debit or credit card while abroad. It has been determined
to make appropriate adjustments in light of the feedback and recommendations.
To begin, the TCS rate would remain unchanged at 7 lakh per individual per year
for every purpose under LRS and for overseas trip tour packages, irrespective
of the manner of payment.

The Ministry of
Finance has announced that the commencement of the new TCS rates and the
incorporation of credit card payments into LRS will be delayed until later
dates.

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