Banks get 8 months to effect TCS on international credit card spend

Rule could be implemented from next fiscal year

The central government has given banks and credit card entities six to eight months to put in place the requisite reporting mechanism and related features to collect tax at source on international credit card transactions, a senior bureaucrat told Business Standard.
 

According to the bureaucrat, the plan to bring overseas credit cards under the Liberalised Remittance Scheme (LRS) has not been

mothballed and is simply being deferred so that banks get adequate time to get the system up and running.
 

The official expects the reporting mechanism to be ready in the given time, and the rule could be implemented in the