20% TCS on all international transactions done using a credit card

[anirban.choudhury]

TCS have GST?

no
Forex markup has 18% gst

 

[Stratosphere]

TCS have GST?

He means GST on the foreign mark up banks charge

 

[thanix]

TCS have GST?

No, don't give them ideas. Keep calm and delete the post 😂

 

[CMG]

no
Forex markup has 18% gst

Ahh okay.

 

[Stratosphere]

Now, it's necessary to keep a record of all foreign exchange transactions, including minor domain purchases. All of these need to be verified during the income tax return filing. This will become even more inconvenient when making expenditures during international travels. Bought a coffee at an airport in Vietnam? You'll need to record that and verify it during your income tax return.

Exactly. This will create a whole lot of issues at the time of filing. Every statement will have to be audited to make sure we can eek out all the foreign transactions done, even online and on Indian soil. Dayummmm

 

[CMG]

Huge TCS collected without having to give any interest on it for several months.

 

[anirban.choudhury]

Exactly. This will create a whole lot of issues at the time of filing. Every statement will have to be audited to make sure we can eek out all the foreign transactions done, even online and on Indian soil. Dayummmm

I think in that case , isnt it best to get forex currency , that would also charge 20% TCS , then you wont need to think about maintaining those petty transactions ?

 

[Stratosphere]

I think in that case , isnt it best to get forex currency , that would also charge 20% TCS , then you wont need to think about maintaining those petty transactions ?

It does sound logical. But defeats a major use case of highly rewarding cards like Axis Reserve. Shit just got real.

 

[thanix]

On the positive side, my resolve has increased to book that hotel bookings for my next trip only with points 😁

 

[iNokia]

Well atleast technofino is rejoicing. More new members will join such forums to discuss loopholes and tactics to evade govt taxes.

 

[WhoU]

Well atleast technofino is rejoicing. More new members will join such forums to discuss loopholes and tactics to evade govt taxes.

I don’t think anyone here is discussing about tax evasion bro.

 

[4uziaul]

That means even for small transactions of less than $100 we have to pay 20% TCS?

 

[CMG]

That means even for small transactions of less than $100 we have to pay 20% TCS?

Yes

 

[CMG]

Net reward rate of Reserve falls to approx 8.83%

Calculation
Spend: 2000 equivalent in Forex
Fx Markup: 30
Fx Markup GST: 5.4
TCS: 400
Rewards: 300
Airmiles: 240
Interest earned for 400 @7%: 28

Estimated value = 240-30-5.4-28 = 176.6 = 8.83% Net reward rate

 

[4uziaul]

Yes

Transaction below certain value could have been excluded.

 

[WhoU]

Net reward rate of Reserve falls to approx 8.83%

Calculation
Spend: 2000 equivalent in Forex
Fx Markup: 30
Fx Markup GST: 5.4
TCS: 400
Rewards: 300
Airmiles: 240
Interest earned for 400 @7%: 28

Estimated value = 240-30-5.4-28 = 176.6 = 8.83% Net reward rate

This is subjective as TCS can also be used as advance tax payment by some people.

 

[Pavan]

So by default 20% increase in tour charges

 

[dungeonMaster]

My company is listed on Nasdaq, I buy share of my org and the amount is deducted through my salary. Will TCS be deducted in this case?

 

[4uziaul]

So by default 20% increase in tour charges

Not just tour charges any international spend and you can add that 20% TCS.

 

[dungeonMaster]

Exactly. This will create a whole lot of issues at the time of filing. Every statement will have to be audited to make sure we can eek out all the foreign transactions done, even online and on Indian soil. Dayummmm

Maybe, cleartax etc will come with some feature to read statement for forex transactions like cred does.