36 C
Wednesday, October 4, 2023

Emirates News Agency – India delays tax on overseas tourism spending


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


Source link

Related Articles

ADNOC Gas Awards $615M MENA Carbon Capture Contract

ADNOC Gas plc has awarded a $615 million (AED2.26 billion) Engineering, Procurement, and Construction (EPC) contract to Petrofac Emirates for the construction of carbon...

UAE congratulates Germany’s President on Unity Day

President His Highness Sheikh Mohamed bin Zayed Al Nahyan has conveyed his congratulations to President Frank-Walter Steinmeier of Germany on their Unity Day, celebrated...

Mansour bin Zayed leads the 2024 budget review

His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, and Chairman of the Presidential Court, presided over the UAE's General...

UAE Weather: Tonight, 21ºC with higher humidity

The National Centre of Meteorology has forecast a generally fair day with occasional clouds and light to moderate winds. Some clouds may develop to...

Abu Dhabi’s LuLu Group launches huge mall in Hyderabad

Abu Dhabi's LuLu Group has entered Telangana with the opening of a 500,000 sqft mall and hypermarket in Hyderabad. The group plans to invest...

Latest Articles