Govt excludes overseas credit card spends from LRS

The finance ministry finally on midnight Friday amended foreign exchange management rules to exclude international credit card spends from the purview of liberalised remittance scheme (LRS) hours after issuing a CBDT circular that “no TCS shall be applicable on expenditure through international credit card while being overseas “till further order”.

“Use of International Credit Card while outside India.— Nothing contained in rule 5 shall apply to the use of International Credit Card for making payment by a person towards meeting expenses while such person is on a visit outside India,” the notification issued by the Department of Economic Affairs (DEA) said.

The notification is implemented with retrospective effect from May 16, DEA, an arm of the finance the ministry said in the order.