I'm so confused with this new Tax Rule regarding TCS on foreign exchange, remittance and spending in foreign currency.
Many finance blogs states that after 1 July a 20% TCS will be charged on all foreign expenditures without any limit, however on my Niyo global app it says the 20% TCS is only applicable if the expenditure on my Niyo Global card exceeds 7 lakhs.
I have a trip to Maldives lined up in July and hence I have few questions regarding this
Many finance blogs states that after 1 July a 20% TCS will be charged on all foreign expenditures without any limit, however on my Niyo global app it says the 20% TCS is only applicable if the expenditure on my Niyo Global card exceeds 7 lakhs.
I have a trip to Maldives lined up in July and hence I have few questions regarding this
- Will this 20% TCS applicable on buying Maldives currency MVR (Maldivian Rufiyaa) ?
- If I spend money using my Niyo Global card will there be TCS charged on those transactions, even if the total transactions does not exceed 7 Lakhs INR ?
- If spending money in cash for shopping in MVR will there be any tax liability ?
- If answer of all the above is yes then how can one avoid paying this tax. 20% is kinda huge IMO.