The move also comes at a time when the government is set to impose a 20 per cent Tax Collection at Source (TCS) on certain international spends from July 1. Generally, TCS is the tax collected by a seller at the time of sale of goods or services while Tax Deducted at Source (TDS) is the amount levied as tax by the government. So, bulk of the transactions made by most will not be covered under 20 per cent TCS, Chief Economic Advisor (CEA) V Anantha Nageswaran has said. The 20 per cent TCS levy on international credit card spends is to come into force from July 1. A 5 per cent levy is charged on expenses exceeding Rs 7 lakh.

Source: Economic Times May 27, 2023 14:33 UTC