In this episode of the Tax Experience Series, Adhitya Srinivasan and Mr J.B. Mohapatra, former Chairman of the CBDT, explain how TCS works and explore the new TCS rule on overseas credit card transactions. Join us for an insightful discussion with one of the foremost tax experts in the country.

Timestamps:
(00:00) Intro
(01:08) What is TCS?
(06:18) Difference between TCS and TDS
(09:40) How does TCS work?
(11:47) Liberalised Remittance Scheme - LRS
(15:56) Changes in relation to Credit Card Transactions
(18:55) Tax Impact
(21:54) Why did the Government change the law?
(25:45) Form A2
(27:53) ‘LRS is a drain on government resources’
(29:55) Mapping Foreign Remittances
(30:56) TCS on LRS is not an old idea
(32:17) Inequity between domestic and foreign payouts
(34:45) TCS Rate Change from 5% to 20%
(38:57) How does the LRS work in practice?
(43:02) TCS on CC transactions for shopping overseas
(45:25) How will the clarification be given legal effect?
(51:33) TCS on purchases from a foreign online marketplace
(53:08) TCS on subscriptions for apps and software
(54:07) TCS on remittances from parent to child studying abroad
(54:52) TCS on remittances from a parent to a child working abroad
(55:42) Tax on credit card rewards/cash back?
(58:25) Will the new TCS rule herald a return to cash?
(1:00:35) Suggestions
(1:03:15) Tax Credits for TCS | Managing Cash Flows
(1:05:30) Is TCS applicable on GST?

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