20% TCS on Credit Card payments to foreign vendors under revised Finance Bill

The Lok Sabha passed additional amendments to Finance Bill, which mentions that any payment made with a credit card to foreign vendors (such as for hotel and airline bookings, gaming, subscriptions to software/magazines/memberships, etc.), will be subjected to TCS at 20% irrespective of the amount paid. Credit card payments for foreign travel can be now brought under RBI’s Liberalised Remittance Scheme, announced Nirmala Sitharaman in the Lok Sabha.