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Applicability of GST as per order size.

As stipulated by the Government of India, any conversion from one currency to another - sale, encashment remittance will be charged a GST on the gross amount of currency exchanged as per the following slabs.

Goods and Service Tax Schedule for forex purchase and sale under GST regime

Amount of Forex Transaction (INR)GST
Up to 1 Lakh0.18% of Amount of Transaction subject to the minimum of Rs.45
Above 1 Lakh and up to 10 LakhsRs. 180 + 0.09% of Amount of Transaction above 1 lakh to 10 lakh
Above 10 LakhsRs.990 + 0.018% of Amount of Transaction above Rs.10 lakhs subject to maximum of Rs.10800

TCS (Tax Collected at Source) on foreign remittance

  • TCS (Tax Collected at Source) on foreign remittance is an advance income tax collected by banks or financial institutions when a resident Indian sends money abroad under the Reserve Bank of India's (RBI) Liberalised Remittance Scheme (LRS).

Key Points

  • Not an additional tax: TCS is not an extra cost but an advance tax payment. You can claim credit for the collected TCS against your total income tax liability when filing your Income Tax Return (ITR). If your tax liability is lower than the TCS collected, you are eligible for a refund.
  • Applicability: TCS is collected on a cumulative basis at the PAN (Permanent Account Number) level across all banks and transactions within a financial year.
  • Threshold: A basic threshold of ₹10 lakh per financial year is exempt from TCS for most LRS purposes.

Compliance Points In TCS

  • PAN is mandatory
  • TCS collected at the time of remittance
  • TCS certificate ( Form 27 D) issued
  • TCS credit reflects in Form 26 AS

Sl NoPurposeApplicable TCS rate
1Forex/ Remittance for overseas Education(Loan from a recognised Financial institution)0%
2Forex/ Remittance for overseas Education(Other than Loan from recognised financial institutions)5% on amount above 10 lakhs
3Medical treatment abroad5% on amount above 10 lakhs
4Forex/ Remittance other than overseas Education(gift , investment, family maintenance, etc)20% on amount above 10 lakhs
5Overseas Tour packages5% on amount upto 10 lakhs, 20% on amount above 10 lakhs
Luluforex | Tax