credit card spends done overseas will not attract tax collected at source as these transactions have been kept outside the liberalised Remittance scheme. Now remember earlier, the government sought to bring all international credit card transactions under the ambit of the liberalised Remittance scheme. The Ministry of Finance has now issued a clarification on the matter through a series of tweets, while credit card transactions overseas are outside the ambit of the liberalised Remittance scheme. Now, any international transaction conducted from India will attract TCS, so users or consumers purchasing foreign goods and services through an international merchant will need to pay 5% upfront from the first of October. The tax collected at source will be raised to 20% for spends above rupees seven per person. The higher tax rate will be applicable on international tour packages and spends through transaction modes other than credit cards. It is important to note that the government's move to bring international credit card spends within the ambit of the liberalised Remittance scheme earlier had got several reactions and suggestions which have now been considered
