How is TCS calculated on LRS?
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How is TCS calculated on LRS?
TCS applicable will be at 5\% of the total amount remitted and the amount remitted will not be subsumed while considering INR 7 lakhs limit. For instance, if the amount remitted is INR 5,00,000, TCS at 5\% will be applicable and tax collected will be INR 25,000.
How is TCS calculated on foreign remittance?
Let us assume the total foreign exchange platform availed of under LRS in one financial year is Rs 10 lakh, and the person wants to remit the amount outside the country. In this case, TCS at 5\% will be applicable on the Rs 3 lakh. (Rs 10 lakh minus Rs 7 lakh) and tax collected will be Rs 15,000.
Is LRS tax refundable?
From October 1, authorised dealers, typically banks and remittance companies will collect 5\% tax at source once LRS remittance(s) made by an individual crosses 7 lakh in a financial year. In case the TCS is higher than your tax payable, you will get a refund.
What is TCS for international transaction?
TCS will be applicable for all foreign cash withdrawals through ATM, POS or e-commerce, including transactions done on Foreign Merchants or sites which offer Dynamic Currency Conversion (DCC) transactions.
What are TCS charges?
Tax Collected at Source (TCS) under GST means the tax collected by an e-commerce operator from the consideration received by it on behalf of the supplier of goods, or services who makes supplies through the operator’s online platform. TCS will be charged as a percentage on the net taxable supplies.
How do I claim back TCS?
Steps to file ‘TDS and TCS credit received’ on GST portal
- Step 1: Login toGST portal.
- Step 2: Go to ‘Services’ > ‘Returns’ > ‘Returns Dashboard’
- Step 3: Select the return period of GSTR-3B being filed and proceed to ‘TDS/TCS credit received’ tile.
Who can collect TCS?
New section 206 (1H) was introduced in October 2020 for collecting TCS from the buyers of goods who makes a payment of more than Rs 50 lakhs towards sale consideration in the current FY. The TCS is to be collected only by the entities having more than Rs 10 crore of turnover in the previous FY.