The government on Friday relaxed the rules that mandated 20 percent Tax Collected at Source (TCS) on international transactions using debit or credit cards. It said that any international transaction done by an individual using his/her debit or credit card up to Rs 7 lakh will not attract the 20 percent levy.

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In an interview with CNBC-TV18, Shikhar Aggarwal, Joint MD at BLS International Services, expressed confidence in the company's ability to weather the storm caused by the 20 percent TCS policy, stating that he does not expect it to have a significant impact on their operations.

“Around 10 percent of our revenue comes from India and 90 percent comes from global tourists. We have not seen any impact and we do not foresee any impact because of this policy on our revenue,” Aggarwal said.

One of the key factors contributing to BLS International's positive outlook is the Spain visa contract, which is expected to drive revenue growth. Aggarwal predicts an increase in visa volumes from Spain, projecting a notable 15-20 percent jump.

Aggarwal said, “For the Spanish government, we have been providing visa services since 2016. After the contract expired, there was re-tender which we won at a higher service charge than before. So, now the contract is there for another five-year duration.”

He added, “Now, an additional category of national visa has been added to this outsourcing that we do not know the exact numbers but we foresee a 15 to 20 percent increase in application volume because of this new category.”

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Aggarwal also announced plans to open newer offices in Latin America.

“We will definitely be opening offices in newer regions of Latin America and we are changing our offices, expanding them in line with the new volumes that are expected. So, definitely there will be an increase in volume and revenue for the company because of this new contract.”

Addressing concerns about promoter holding, Aggarwal emphasised that there is no intention to reduce promoter holding in the company.

Also Read | 20% TCS payments on international credit cards: Experts foresee rise in informal channels, cash payments