The finance ministry finally on midnight Friday amended foreign exchange management rules to exclude international credit card spends from the purview of liberalised remittance scheme (LRS) hours after issuing a CBDT circular that “no TCS shall be applicable on expenditure through international credit card while being overseas “till further order”.
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“Use of International Credit Card while outside India.— Nothing contained in rule 5 shall apply to the use of International Credit Card for making payment by a person towards meeting expenses while such person is on a visit outside India,” the notification issued by the Department of Economic Affairs (DEA) said.
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The notification is implemented with retrospective effect from May 16, DEA, an arm of the finance the ministry said in the order.