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Credit Card - Help & Recommendations


El Tigre Chino
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1 hour ago, Bird Bird Bird said:

How are they doing this ? Hasn't the govt mandates that TCS is only after 7L threshold ? 

Won't there be court cases against them since they are not following threshold ?

Govt. has not mandated anything.

They just released a provision.

 

TDS/TCS are obligations casted on the payer/recipient to deduct/collect the taxes of another.

It has nothing to do with their own taxes. But they are liable in case of default as if it is their own tax.

 

In case, banks gets the 7 Lakh limit wrong, they are liable for the tax not collected along with interest.

So they take a safe position & collect since the remitter can claim a refund.

Completely Bank's choice and Govt. knew that this would happen and just played smart.

 

I will still raise such scenarios to the grievance departments and also to RBI.

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I think Govt. has played a fast one here.

The changes to implement the 7L threshold were supposed to be issued separately but I can't find any such notification in the gazette.

 

Unless I am wrong, Govt. is effectively stepping back from their own words by just delaying the notification.

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Yeah I got that email. Yeah I’ve already crossed the non-existent threshold. Yeah it’s idiotic and it sucks. 
Still, if it made any sense for any reason. Can someone shine this light? I can’t really.. see the reason. 

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3 minutes ago, achilles said:

Yeah I got that email. Yeah I’ve already crossed the non-existent threshold. Yeah it’s idiotic and it sucks. 
Still, if it made any sense for any reason. Can someone shine this light? I can’t really.. see the reason. 

Reason: Babus smoked new maal.

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Have a question-


If I load up a forex card before 30th June, will I still get the 20% TCS docked when I do a transaction post 1st July?

 

If I were to have 10k loaded up before the end of the month would it be as good as having the ability to spend 8k or full 10k next month?

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8 minutes ago, El Tigre Chino said:

Have a question-


If I load up a forex card before 30th June, will I still get the 20% TCS docked when I do a transaction post 1st July?

 

If I were to have 10k loaded up before the end of the month would it be as good as having the ability to spend 8k or full 10k next month?

No.

TCS is applied during payment or when the funds are purchased. Since you have already purchased and loaded forex, you won't be levied TCS.

Can't say if banks and babus think otherwise.

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57 minutes ago, KunjanPSD said:

Communication from ICICI states that DC/CC int. spends till 7L will be exempted from TCS.

Although there is no guarantee without a notification from MOF but looks like market leaders like HDFC are lagging. Not surprised.

ICICI sent me a mail for 'Nil' Threshold for business and Leisure. 

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24 minutes ago, dante77 said:

Yeah. June 15, same. I guess it is the same one then! But June 15 was literally last week lol. 

Doesn't mention NIL in the one I have.

Mentions the following:

"International spends on both Debit Card and Credit Card of up to 7 lakh will be exempted from LRS and TCS will not be applicable"

 

Also, received communication from HSBC as well. Mentions 7L threshold.

 

HDFC has really gone mad unless all the banks are going to turn as well.

Axis also sent an email without any mention of threshold on May 26th.

I hope these two banks get it straight.

Edited by KunjanPSD
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25 minutes ago, KunjanPSD said:

Doesn't mention NIL in the one I have.

Mentions the following:

"International spends on both Debit Card and Credit Card of up to 7 lakh will be exempted from LRS and TCS will not be applicable"

 

Also, received communication from HSBC as well. Mentions 7L threshold.

 

HDFC has really gone mad unless all the banks are going to turn as well.

Axis also sent an email without any mention of threshold on May 26th.

I hope these two banks get it straight.

etf7JhC.jpg

 

Yeah. The last one says the same. Tour packages cost 20%. So I guess it is fine :)

 

Yayyy! 

 

Edited by dante77
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SBI implementing 7L threshold as well, received communication.

 

Response from HDFC:

"not received any update on process related to TCS on LRS through credit card dates as of now"

 

Not sure what it actually means, hopefully HDFC will implement the threshold as well.

Edited by KunjanPSD
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1 hour ago, rushab oswal said:

Dont get it ? oversease tour package will be paid via cc only na? so lagega ya nae lagega?

Language is ambiguous but if paid via cc, will come under the threshold.

But, it is likely that the Indian tour operators will charge TCS on their end for international tour packages. MMT has already said that they will.

Best will be book directly via airlines.

 

Gonna get my mom a CC now.

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Reply from HDFC:

 

"We wish to clarify that we have not received any update on process related to TCS on LRS through credit card dates as of now from the law by GOI & RBI for bringing credit cards spent within the ambit of LRS. Once updated received communication will be sent from bank end to all customers"

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