I-T to clarify norms on TCS on overseas credit card spend
The tax department will soon come out with a clarification in the form of FAQs to distinguish between expenses incurred on personal visits and business trips for levy of 20 per cent Tax collection at source (TCS) on overseas credit card spends from July 1, a senior official said on Friday.
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Lucknow The tax department will soon come out with a clarification in the form of FAQs to distinguish between expenses incurred on personal visits and business trips for levy of 20 per cent Tax collection at source (TCS) on overseas credit card spends from July 1, a senior official said on Friday.
Following a notification which brought credit card spends under LRS, concerns have been raised on how personal and business expenses would be segregated by the banks who will be required to deduct the TCS on such expenses.
Finance ministry joint secretary (Tax Policy and Legislation) Raman Chopra said the government would soon issue a clarification on the mode of applicability of the TCS provision. “There has been a lot of discussion with the finance secretary, the revenue secretary and the finance minister. We are certainly going to come up with some clarifications," Chopra said.
Under Spotlight
- Under LRS, individuals can remit money abroad up to $2.5 lakh annually
- Any spending beyond limit would need RBI approval
