No TCS on overseas payment through international credit, debit cards

The government on Friday said no TCS will be levied on international spending of up to Rs 7 lakh a year by using debit or credit cards.

Facing backlash from a wide section of people, the Finance Ministry said the move is aimed at removing procedural ambiguity with regard to Liberalised Remittance Scheme (LRS) and the levying of Tax Collected at Source (TCS).

The ministry’s decision earlier this week to bring international credit card spending under the RBI’s liberalised remittance scheme (LRS) and the consequent levy of 20 per cent TCS has evoked sharp reactions from experts and stakeholders.