My understanding is that it will attract TCS but exempted till 7L.
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20% TCS on all international transactions done using a credit card
- Thread starter TechnoFino
- Start date
Technically exempted until 7L. But it is looking like some banks will have to charge 20% TCS to cover their liabilities until they or the government figures out a way to manage this impractical and dumb TCS matter. Speaks volumes of how much thought and effort they put into it.
Now I wonder in cases of refunds among others which will never be solved or be a nightmare to deal with.
It's a convoluted mess and should be done away with. Hopefully the card industry will lobby the govt hard and get their way.
This whole unproductive saga could have been easily averted with some proper and structured planning and analysis before implementing the change by the policy makers.
Had this happened for the first time - No
Will it happen again in the future - A definite Yes...
- because, history suggests that there is no learning from the previous mistakes..
Was the SWOT analysis/ impcat analysis carried out before this change was implemented - GOD knows.
Had they consulted all the major stake holders--??( don't think so)
I wonder how much budget is allocated for Analysis Phase for any new / big change projects ( govt projects). Most likely miniscule, if any..
It appears that " Act first, think later" was what that was being followed by these well qualified policy maker...
Ultimate suffers are the honest, middle class tax payers,
Big fish always finds a way to escape ... Smallest fish doesn't even care about these laws as getting thier basic needs fulfilled consumes their whole life.
Is it really impossible to get the big fish to pay their fair share of taxes to the Govt, IF Govt seriously and sincerely makes a NON COMPROMISING effort?
I would say it may be harder task but not definitely impossible.
Then why it is taking so long, as a country , for paying all of our fair share of taxes and live happily and with prosperity?
After all, honest taxpayers( whether direct / indirect) are the ones who is running this show, and for that they feel that they are getting very little and on top of it they are constanly harrased by this mindless/ thought less policies impacting 95% , to catch 5%.
There should be definetely a non intrusive way of increasing the tax collection and catching the big fish, with out disrupting the large middle class if the Govt really means to do it.
It is high time( after 75 years) this whole system need to be revamped. Govt should make sincere efforts in treating everyone the same. making tax paying and compliance easier tasks for middle class tax payer and for all, if we dream to become TOP 3 biggest economy / a developed nation in the near future.
75 years is long enough to be in a state of developing economy, I believe..
Enough of my rant for this evening... Have a nice rest of the evening to all...
Had this happened for the first time - No
Will it happen again in the future - A definite Yes...
- because, history suggests that there is no learning from the previous mistakes..
Was the SWOT analysis/ impcat analysis carried out before this change was implemented - GOD knows.
Had they consulted all the major stake holders--??( don't think so)
I wonder how much budget is allocated for Analysis Phase for any new / big change projects ( govt projects). Most likely miniscule, if any..
It appears that " Act first, think later" was what that was being followed by these well qualified policy maker...
Ultimate suffers are the honest, middle class tax payers,
Big fish always finds a way to escape ... Smallest fish doesn't even care about these laws as getting thier basic needs fulfilled consumes their whole life.
Is it really impossible to get the big fish to pay their fair share of taxes to the Govt, IF Govt seriously and sincerely makes a NON COMPROMISING effort?
I would say it may be harder task but not definitely impossible.
Then why it is taking so long, as a country , for paying all of our fair share of taxes and live happily and with prosperity?
After all, honest taxpayers( whether direct / indirect) are the ones who is running this show, and for that they feel that they are getting very little and on top of it they are constanly harrased by this mindless/ thought less policies impacting 95% , to catch 5%.
There should be definetely a non intrusive way of increasing the tax collection and catching the big fish, with out disrupting the large middle class if the Govt really means to do it.
It is high time( after 75 years) this whole system need to be revamped. Govt should make sincere efforts in treating everyone the same. making tax paying and compliance easier tasks for middle class tax payer and for all, if we dream to become TOP 3 biggest economy / a developed nation in the near future.
75 years is long enough to be in a state of developing economy, I believe..
Enough of my rant for this evening... Have a nice rest of the evening to all...
Kind of the feeling we all have right now , I suppose..
You're working for govt for 5 months a year
You're working for govt for 5 months a year
3 ways to avoid the 20% TCS on overseas tour packages effective July 1, 2023
Starting from July 1, 2023, a tax collected at sources (TCS) of 20 per cent will apply to overseas tour packages. If you are planning to take an international trip soon, you must understand this new rule and how you can use it in the most efficient way to save your hard-earned money. Here are...
Lets keep disclosing https://www.indiatoday.in/business/...ith-banks-foreign-expenses-2395502-2023-06-20
TCS implementation date extended by 3 months. New date is 1st October, 2023.
No TCS on overseas spending using credit cards: Centre - Times of India
India Business News: The finance ministry on Wednesday said that overseas spending using international credit cards will not be included under the Liberalised Remittance S
m.timesofindia.com
CARDBITRAGE
TF Legend
As expected. There is no way they could've created a whole new tracking system out of the blue.No TCS on overseas spending using credit cards: Centre - Times of India
India Business News: The finance ministry on Wednesday said that overseas spending using international credit cards will not be included under the Liberalised Remittance S
So who is this policy maker who actually intiated this idea in the first place to include overseas CC spending under LRS scheme, which brings under 20% TCS bracket over 7 lakh spending..... How many man-hours, resources , time and how much money wasted from all these relevant stake holder which includes bureaucrats, media, banks,RBI, experts, finance professionals, tax payers etc.....
In the below mentioned article it was said
" Banks and the Reserve Bank had flagged the difficulty in executing the TCS regime on credit cards to the government."
So why didn't they consult Banks and RBI before this policy announcement ?
Whoever is responsible for this fiasco, are they accountable for all this mess? As I said in my inital rant dated 12/06, this is not the first time and won't be the last time, Act First Think Later... history repeats, we won't learn... Have a nice time guys ...
Overseas spending using credit card won't attract TCS
Banks and the Reserve Bank had flagged the difficulty in executing the TCS regime on credit cards to the government. The finance ministry on May 16 scrapped Rule 7 of the Foreign Exchange Management (Current Account Transactions) Rules, 2000, which kept international credit card spends out of...
Last edited:
This was one of the most discussed topics everywhere, and out of topic suddenly. But will surely implemented with proper systems in future.So who is this guy who actually intiated this idea in the first place to include overseas CC spending under LRS scheme, which brings under 20% TCS bracket over 7 lakh spending..... How many man-hours, resources , time and how much money wasted for all these relevant stake holder whic includes bureaucrats, media, banks,RBI, experts, finance professionals, tax payers etc.....
In the below mentioned article it was said
" Banks and the Reserve Bank had flagged the difficulty in executing the TCS regime on credit cards to the government."
So why didn't they consult Banks and RBI before this policy announcement ?
Whoever is responsible for this fiasco, are they accountable for all this mess? As I said in my inital rant dated 12/06, this is not the first time and won't be the last time, Act First Think Later... history repeats, we won't learn... Have a nice time guys ...
Overseas spending using credit card won't attract TCS
Banks and the Reserve Bank had flagged the difficulty in executing the TCS regime on credit cards to the government. The finance ministry on May 16 scrapped Rule 7 of the Foreign Exchange Management (Current Account Transactions) Rules, 2000, which kept international credit card spends out of...economictimes.indiatimes.com
Updated Information on TCS as of 28th June
No tcs till 7 lakhs
No tcs on CC
New tcs of 20% would be applicable above 7 lakhs spend a year and date has been revised from 1st July to 30th September
m.economictimes.com
No tcs till 7 lakhs
No tcs on CC
New tcs of 20% would be applicable above 7 lakhs spend a year and date has been revised from 1st July to 30th September
New Tax Collection at Source Rate: No TCS on foreign remittances of up to Rs 7 lakh, credit card spending overseas; higher rates to kick in from October 1 - The Economic Times
TCS on foreign remittances: There will be no tax collection at source (TCS) on foreign remittances of up to Rs 7 lakh per financial year, said Ministry of Finance. It has clarified that transactions done through international credit cards while being overseas would not be counted as LRS...
VEry TrueSo who is this policy maker who actually intiated this idea in the first place to include overseas CC spending under LRS scheme, which brings under 20% TCS bracket over 7 lakh spending..... How many man-hours, resources , time and how much money wasted from all these relevant stake holder which includes bureaucrats, media, banks,RBI, experts, finance professionals, tax payers etc.....
In the below mentioned article it was said
" Banks and the Reserve Bank had flagged the difficulty in executing the TCS regime on credit cards to the government."
So why didn't they consult Banks and RBI before this policy announcement ?
Whoever is responsible for this fiasco, are they accountable for all this mess? As I said in my inital rant dated 12/06, this is not the first time and won't be the last time, Act First Think Later... history repeats, we won't learn... Have a nice time guys ...
Overseas spending using credit card won't attract TCS
Banks and the Reserve Bank had flagged the difficulty in executing the TCS regime on credit cards to the government. The finance ministry on May 16 scrapped Rule 7 of the Foreign Exchange Management (Current Account Transactions) Rules, 2000, which kept international credit card spends out of...
Decision was probably made at the top: modi, Sitharaman, etc. No one dares oppose and everyone merely nods and claps in approval.
Change management is an art. Whenever a change is introduced, one needs to consider the impact, cost, failure modes and do a gradual change. What this government lacks is the consultative approach with stakeholders and bring a change. It is always a abrupt step change that ensures chaos, brickbats, delays and rollbacks. But some never 'change'
So even if foreign spending on CC is greater than 7 lpa, no TCS, right?Updated Information on TCS as of 28th June
No tcs till 7 lakhs
No tcs on CC
New tcs of 20% would be applicable above 7 lakhs spend a year and date has been revised from 1st July to 30th September
New Tax Collection at Source Rate: No TCS on foreign remittances of up to Rs 7 lakh, credit card spending overseas; higher rates to kick in from October 1 - The Economic Times
TCS on foreign remittances: There will be no tax collection at source (TCS) on foreign remittances of up to Rs 7 lakh per financial year, said Ministry of Finance. It has clarified that transactions done through international credit cards while being overseas would not be counted as LRS...
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