Dear All,
I hope you're well. There has been a lot of confusion regarding the new 20% TCS on Foreign Remittances starting from 1st October. Given that my business involves daily foreign transactions, I'm seeking clarification on the following points:
1. Currently, we are using our International business debit card, which falls under LRS. If we switch to our credit card, will the 20% TCS no longer apply?
2. I've come across information on certain financial news sites suggesting that TCS applies when payments are made from individual bank accounts but not when made through an entity. However, does this exemption apply to our proprietorship firm if we use the debit/credit card linked to our firm current account?
3. Will the 20% TCS be deducted from our bank account instantly upon making a foreign payment?
4. If we use PayPal and transact in INR instead of USD, will we still be subject to the 20% TCS when making payment in INR that includes conversion fees?
I appreciate any insights and assistance provided by those who can shed light on these queries.
Best Regards,
CAclubindia
