Indians sending forex abroad or availing overseas tour packages between April 1, 2023, and October 1, 2023, will need to make a declaration to the government through their forex dealers, according to a circular issued by the government on June 30. The declarations will cover the amount of foreign remittances done by them before October 1.
“Since the facility to provide real time update of remittance under LRS by remitter is still under development by the RBl, it is clarified that the details of earlier remittances under LRS by the remitter during the financial year may be taken by the authorised dealer through an undertaking at the time of remittance,” the circular said.
The government will also hold the forex spender liable for misreporting or incorrect submissions. “…for any false information in the undertaking, appropriate action may be taken against the remitter under the Act,” the government circular says.
The circular also clarifies if the forex or the authorised dealer as the case maybe, “correctly collects the tax at source based on information given in this undertaking, he will not be treated as "assessee in default".
In other words, both the remitter as well as the authorised dealers are accountable for correct submission of remittance amounts incurred in 2023-2024 and appropriate tax collected at source.
The circular also says tour operators will have to follow a similar methodology of taking an undertaking from the buyer of overseas tour programme package.
The government has also amended FEMA rules to exclude use of international credits cards while outside India.
“Nothing contained in rule 5 shall apply to the use of International Credit Card for making payment by a person towards meeting expenses while such person is on a visit outside India,” a notification by the government of India said.
These moves from the government come days after it announced that the higher rate of tax collected at source (TCS) for foreign remittances would be levied from October 1, 2023 as against April 1, 2023 as announced in the Budget.
(Edited by : Pradeep John)
First Published: Jul 1, 2023 1:33 AM IST
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