Banks have expressed reservations against the proposed 20 per cent tax collected at source (TCS) under the Liberalised Remittances Scheme (LRS), especially credit card spends abroad, and want the government to reconsider the proposal as they feel it imposes a heavy “burden” on them, it is learnt.
On Wednesday, in a reversal of its earlier decision, the government deferred the move to include international credit card spends outside India under the LRS. This means there will be no levy of TCS on international credit card spends outside India as of now. The government also extended the timeline to levy the higher proposed TCS rates with effect from October 1 instead of July 1.
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