Amendment over TCS on Foreign Payments under LRS Scheme of R.B.I. and Overseas Tour Packages by Finance Bill 2024
Before amendment in Finance Bill 2024
TCS needs to be collected by Authorized Deal who receive amount for remittance under L.R. Scheme of R.B.I. @ 20% irrespective of amount. Similarly Tour Operators also have to collect TCS @ 20% on Foreign Tours Irrespective of amount. If remittance is for the purpose of education or medical treatment, then TCS is 5% if payment is upto Rs.7 Lakhs in a financial yer.
Now after amendment in Finance Bill 2024
TCS by Authorized Dealer under LRS Scheme:
Now there would be no TCS collected by A.D. Under LRS Scheme if payment is less than 7 Lakhs in a financial year. TCS would be 5% if amount is amount exceeds 7 Lakhs in a financial year and purpose of foreign remittance is education or medical treatment. If any other purpose and amount is more than 7 lakhs in a financial year, then TCS would be 20%.
TCS on Overseas Tour Packages
Now TCS would be 5% for Foreign Tour Operation up to 7 Lakhs. And TCS would be 20% if more than 7 Lakhs in a financial year.
