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

[sgoyal9]

The motive of the government is very straightforward.

They would you rather not spend money then spend it on Foreign brands/outside of India. That has been the mindset for quite a while.
The heavy customs and import duties are evidence of this.

Do you want a car that looks and feels good? The government will make sure you pay more than everyone else. Do you want a software unavailable in India? Too bad. Do you want a luxury bag? Just buy the others which are priced similarly but way inferior, at least it is locally produced.

People will look for ways to avoid this tax collection like they do others. I do not endorse or advise that. It is better to be compliant in every way. The potential of some savings is inconsequential to the risks involved.

 

[Karthi52]

Why not charge 100% tcs ?that way, it is even better way to fine the non tax payers. Let taxpayers rot in hell

 

[gurbina]

Another interesting thing will be to see the credit card industry react to this, and how this will affect everything in general like businesses whose trade might indirectly get affected for the better or worse.

If credit card payments were disproportionate to ITR, they could have chased these offenders rather than the whole population.

Anyhow I've seen this infographic going around now, and it clearly shows the small percentage of people affected. This is actually happening and they might actually get their way regardless of how ridiculous, unorthodox and impractical this is.

 

[vigo]

Indians can be at peaks they will open multiple bank/cc accounts and use them to reach the threshold individually 🤣
My friend already does this he receives business payments in name of all family members 😂

Every

Another interesting thing will be to see the credit card industry react to this, and how this will affect everything in general like businesses whose trade might indirectly get affected for the better or worse.

If credit card payments were disproportionate to ITR, they could have chased these offenders rather than the whole population.

Anyhow I've seen this infographic going around now, and it clearly shows the small percentage of people affected. This is actually happening and they might actually get their way regardless of how ridiculous, unorthodox and impractical this is.

And these 4% are the taxpayers!

 

[vigo]

Do you want a software unavailable in India? Too bad.

This is what will hurt startups the most as they depend on softwares which is unavailable in India. Even if some are available in India, there is a GST of 18% on those making the subscription expensive automatically! Just Taxes, Taxes and more Taxes!!

 

[thanix]

This is what will hurt startups the most as they depend on softwares which is unavailable in India. Even if some are available in India, there is a GST of 18% on those making the subscription expensive automatically! Just Taxes, Taxes and more Taxes!!

Hope people are aware of withholding tax that is applicable for goods and services purchased by businesses from abroad on companies that are not in India. It is already a nightmare to buy specialized software from abroad from companies not located in India.

 

[Deleted member 9785]

Backlash impact :
Any payments by an individual using their international Debit or Credit cards upto Rs 7 lakhs per financial year will be excluded from the LRS limits and hence, will not attract any (TCS) Tax Collected at Source: Govt of India Existing beneficial TCS treatment for education and health payments will also continue: GoI

 

[R!ppEr]

Backlash impact :
Any payments by an individual using their international Debit or Credit cards upto Rs 7 lakhs per financial year will be excluded from the LRS limits and hence, will not attract any (TCS) Tax Collected at Source: Govt of India Existing beneficial TCS treatment for education and health payments will also continue: GoI

govt ch***a hai ekdum, first bring out random rules then backtrack!!

 

[Deleted member 9785]

govt ch***a hai ekdum, first bring out random rules then backtrack!!

Next year ______________ hai. 2025 se ................................

 

[amit]

Backlash worked.

 

[Deleted member 9785]

Backlash worked.

as elites were hit

 

[CVR]

 

[Chaitanya-a]

as elites were hit

Whole Twitter feed was filled up with criticism. That worked fortunately.

 

[sauravkumar]

Scrapped!!😑😑

Doesn't knew Technofino community has this much power!!😁😁

 

[Swann]

Whole Twitter feed was filled up with criticism. That worked fortunately.

Now also Twitter space going on
😂

 

[Venky]

Could have done this in the first place and avoided such backlash, but at least they did something. 🤙

 

[ARV]

But now after 7L its 20% instead of 5%, its also a big increase but wont hurt normal people

 

[iNokia]

as elites were hit

Lol people here were saying how elites are not at all impacted by this because they have money in Dubai and will only use that instead of Indian banks.
And how only the middle class is affected by this.

 

[Copycat]

Hope people are aware of withholding tax that is applicable for goods and services purchased by businesses from abroad on companies that are not in India. It is already a nightmare to buy specialized software from abroad from companies not located in India.

I thought this was already settled by the SC and you did not need to withhold tax any further in many cases (unless the tax treaty says you have to)

Indian Supreme Court rules on taxability of software payments

taxnews.ey.com

 

[jade]

At last, good sense prevailed. International transaction are common. Most of us would have been effected by the the previous rule.