No TCS On International Credit Card Spends Abroad: Centre Scraps New Rule
NDTV
TCS On International Credit Card Payments: The latest amendment will be effective retrospectively from May 16, the ministry said in a notification. The amendment reverses or scraps a May 16 notification by the ministry.
Payments made by using international credit cards (ICC) during overseas visits will not attract Tax Collected at Source or TCS, as per the latest notification issued by the Finance Ministry.
Putting to rest the controversy over usage of International Credit Cards, the ministry further amended the Foreign Exchange Management (Current Account Transactions) Rules, 2000, to exclude International Credit Cards from the purview of the Reserve Bank's Liberalised Remittance Scheme (LRS) which attracts TCS beyond a threshold at specified rates.
"...the use of ICC for making payment by a person towards meeting expenses while such person is on a visit outside India" will not be covered under LRS, the notification said while inserting Rule 7 in FEM (CAT) Rules.
The latest amendment will be effective retrospectively from May 16, the ministry said in a notification.
