NEW DELHI, May 19 (Reuters) – India will not impose a 20% tax on spending of up to 700,000 rupees ($8,559.55) through international debit and credit cards in a financial year, it said in a statement on Friday, partly reversing the rules within days after a public backlash.
The finance ministry earlier this week had announced a tax of 20% on the spending for overseas travel and purchases using international debit and credit cards from July 1.
A tax collected at source could be claimed by the payee at the time of filing of tax returns.
($1 = 81.7800 Indian rupees)
Reporting by Nikunj Ohri and Nidhi Verma; Editing by Varun H K
Our Standards: The Thomson Reuters Trust Principles.
India exempts overseas card spends up to 700,000 rupees from 20% tax
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