Axis Magnus | 1L milestone from forex txn

[mynameisusername]

Hi,
Would it be beneficial if I am able to spend 1L every month on axis magnus but on forex transaction. I know there is forex markup of 2% (pls feel free to correct) and GST applicable

Is there anything else I would pay like tds/tcs basis new budget?


Pls suggest if i should spend 1l on forex txn.

Many thanks

 

[mynameisusername]

Any thoughts?

 

[787]

No, as per my understanding there is no applicability of tcs on international credit card transactions.

As the payment for these charges are technically borne by the issuing bank at the time of transaction and then later the credit card issuer bills you in india for the same.

This is the scenario as of now and this might change in the future but for now foreign credit card transactions are not charged tcs and are not reflected in Form 26as under section 206cq.

Hope this helps!

 

[caabhi]

Hi,
Would it be beneficial if I am able to spend 1L every month on axis magnus but on forex transaction. I know there is forex markup of 2% (pls feel free to correct) and GST applicable

Is there anything else I would pay like tds/tcs basis new budget?


Pls suggest if i should spend 1l on forex txn.

Many thanks

What do you mean by forex transaction? I mean nature of transaction.

In budget, the TCS rate was hiked from 5% to 20% for remittances in LRS. So spends in travel and remittances for education/maintenance this would affect.

 

[mynameisusername]

What do you mean by forex transaction? I mean nature of transaction.

In budget, the TCS rate was hiked from 5% to 20% for remittances in LRS. So spends in travel and remittances for education/maintenance this would affect.

Transaction done on hotels in europe, amazon [UK], grocery shopping in Spain etc
Let's say if i spend 100 INR in Europe, i would have to pay 100 + 2 (GST) + (2* 18%) = 100 + 2 + 0.036 = 102.036 rs? Is there any other taxes or charges this transaction would attract?

 

[anirban.choudhuryanirban.choudhury is verified member.]

Transaction done on hotels in europe, amazon [UK], grocery shopping in Spain etc
Let's say if i spend 100 INR in Europe, i would have to pay 100 + 2 (GST) + (2* 18%) = 100 + 2 + 0.036 = 102.036 rs? Is there any other taxes or charges this transaction would attract?

No nothing else

 

[vysakh]

No, since it is a merchant expense and not a remittance, it shouldn't attract TCS. It should just be the markup and GST on that.

 

[anirban.choudhuryanirban.choudhury is verified member.]

Also tcs is not applicable on credit card transactions, as per new rule international remittance and holiday package tcs has been increased from 5% to 20% , there have been no tcs on credit card international transaction

 

[787]

Transaction done on hotels in europe, amazon [UK], grocery shopping in Spain etc
Let's say if i spend 100 INR in Europe, i would have to pay 100 + 2 (GST) + (2* 18%) = 100 + 2 + 0.036 = 102.036 rs? Is there any other taxes or charges this transaction would attract?

Nope. That’s all. 102.36rs.

 

[mynameisusername]

Thanks guys for the feedback

 

[SoN!c]

The conversion rate (conversion from EUR to INR) may not be too favourable. You will need to keep that in mind, so the actual difference should be tax + any difference due to exchange rate

 

[mynameisusername]

I am thinking to do one small txn to see rate and all fees applicable.

 

[SoN!c]

You may not be able to judge the rate exactly as the transaction me get posted only a few days later, this will vary from merchant to merchant is is very difficult to predict.

 

[Frade]

Conversion rate for forex transaction is given by the network Visa, Mastercard, Amex etc. So you can check https://www.visa.co.in/support/consumer/travel-support/exchange-rate-calculator.html for Visa cards. Add the mark up fee of 2.36% (2% + 18% GST on that), that should more or less be the exact amount you pay.

 

[DrTS]

I am thinking to do one small txn to see rate and all fees applicable.

Hi,
Did you do any transactions with magnus ? What were the charges ?

 

[mynameisusername]

Hi,
Did you do any transactions with magnus ? What were the charges ?

2% forex + 18% GST on markup 2%))

 

[Frade]

the conversion + 2.36% basically. No other charges right?

 

[mynameisusername]

No, haven't seen any other fews