In A Midnight Notification, The Government Excludes Offshore Credit Card Purchases From LRS
According to the Department of Economic Affairs (DEA), the notification is put into place retroactively as of May 16
After issuing a CBDT circular stating that “no TCS shall be applicable on expenditure through international credit card while being overseas “till further order,” the finance ministry finally amended foreign exchange management rules at midnight on Friday to exclude international credit card spends from the scope of the liberalised remittance scheme (LRS).
Use of a foreign credit card while travelling outside of India. Nothing in Rule 5 shall apply to a person using an international credit card to pay for travel-related expenses when that person is visiting outside of India, according to a Department of Economic Affairs (DEA) notification.
The order from DEA, a division of the ministry of finance, stated that the notification was executed with retroactive effect as of May 16.
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