20% Tax On International Credit Card Transactions. How It Impacts You
From July 1, a 20 per cent tax will be levied at source on credit card spends on international merchants, according to a government notification. International payments made through credit cards will be covered under the Liberalised Remittance Scheme (LRS). This means that payments will be counted within the $250,000 foreign spending limit for resident Indians. Who Will Be Impacted The Most? High-value customers, who actively use their credit cards when travelling overseas, and it will also impact people who make international payments for global goods and services using credit cards.
