TCS on foreign Remittance

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This discussion explains the Tax Collected at Source (TCS) on foreign remittances, particularly under the Liberalised Remittance Scheme (LRS). Since October 1st, 2020, banks must collect tax at 5% on remittances of ₹7 lakh or more. If a PAN is not provided, the rate increases to 10%. The content also briefly mentions TCS on overseas tour packages and general goods sales.

Daya

Daya (Querist)

28 October 2020 what is provision for TCS on foreign remittance.
please explain in brief.

PAWAN KUMAR

PAWAN KUMAR (Expert)

28 October 2020 not applicable on such transactions

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

31 October 2021 From 1st October 2020, Authorized Dealers like banks are required to collect tax @ 5% if an individual remits an amount of 7 lacs or more out of India under Liberalized Remittance Scheme. If buyer does not furnishes PAN than tax shall be collected @ 10%.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

31 October 2021 Secion 206C(1G)(a) – TCS on foreign remittance through Liberalised Remittance Scheme (LRS),

Section 206C(1G)(b) – TCS on selling of overseas tour package

Section 206C(1H) – TCS on sale of any goods [except goods on which TCS applicable as per Section 206C (1), 206C (1F) and 206C (1G)].

These amended provisions of TCS be effective from 1st October, 2020 instead of 1st April, 2020.

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