25.8 C
Dubai
Tuesday, May 21, 2024
spot_img

Emirates News Agency – India delays tax on overseas tourism spending

[ad_1]

NEW DELHI, 29th June, 2023 (WAM) — Spending by Indian tourists on hotel rooms, entertainment, consumables and other items in favorite overseas destinations like Dubai and Abu Dhabi will remain steady for the rest of the year.

Earlier, the Indian Ministry of Finance decided to postpone the 20% tax on the annual overseas spending of Indians. The tax should start from 1Yingshi July is the peak season for Indian outbound tourism.

“There have been many proposals from banks, the tourism industry and the public for the new tax, which have been carefully considered,” the Treasury said yesterday. “It has been decided to give more time to implement the revised tax at source (TCS).”

The new tax will also cover the sale of overseas travel packages. A large number of Indians go to popular tourist destinations such as the United Arab Emirates by purchasing group tours. If the new tax is not delayed, the cost of these tours will rise by 20 per cent from next week.

“Transactions made by Indians overseas via international credit cards will not be counted as part of the Liberal Remittance Scheme (LRS) and are therefore not subject to TCS,” the ministry said yesterday.

Remittances of less than 700,000 Indian rupees ($8,500) for Indian children to be educated in schools such as the UAE will not incur any tax. Above this limit, a TCS of 0.5% will be levied.

Overseas medical and travel package remittances above INR 700,000 limit are already subject to 5% TCS. The Indian media commented today that the proposal to increase the TCS is “for all practical purposes now frozen”.

WAM/Krishnan Nayyar

Tariq Alphaham

[ad_2]

Source link

Related Articles

UAE Revolutionizes Transportation: Abu Dhabi to Dubai in Just 30 Minutes by Flying Taxis

UAE: Soon, travel from Abu Dhabi to Dubai in just 30 minutes by flying taxis In a groundbreaking development for transportation infrastructure, the United Arab...

Etihad Launches Airbus A380 on Abu Dhabi-New York Route

Etihad Airbus A380 Debut: Transforming the Abu Dhabi-New York Route Etihad Airways, one of the leading airlines in the Middle East, has marked a significant...

Abu Dhabi Islamic Bank Maintains Strong Financial Performance in Q1 2024

Abu Dhabi Islamic Bank Continues Strong Performance in Q1 2024 In the fast-paced realm of global finance, few institutions stand out as consistently as Abu...

Abu Dhabi Welcomes World’s First ‘Healthy Living’ Island

Abu Dhabi Welcomes World's First 'Vitality Island' for Healthy Living Abu Dhabi, a global hub of innovation and progress, has once again captured international attention...

NASA’s Revealing Images of UAE’s Flooded Regions Post-Heavy Rains

NASA Unveils Aerial Views of UAE's Flooded Regions A "slow-moving storm" system unleashed unprecedented torrential rains across various parts of the Emirates, inundating the UAE...

Latest Articles