Foreign currency payments such as digital subscriptions

Solution

Foreign currency payments such as digital subscriptions to publications or goods bought on foreign e-commerce sites through international credit cards will count toward an individual's Liberalised Remittance Scheme (LRS) account and attract 20% tax collected at source (TCS).       However, if these purchases are made in Indian rupees, they will not be counted against LRS and face any TCS.    Corporate cards given to employees for official expenditure overseas will also not attract TCS, as these expenses are covered under residual current account transactions outside the LRS.