Is TCS applicable on tour package?
Ans: Yes, all the Sellers (including an Individual or HUF) irrespective of their Turnover in the Previous Year are liable to collect TCS. Hence all those Sellers of Overseas Tour Programme Package who are liable to collect the Tax must apply for Tax Deduction and Collection Account Number (TAN).
How is TCS calculated on foreign remittance?
Let us assume the total foreign exchange platform availed of under LRS in one financial year is Rs 10 lakh, and the person wants to remit the amount outside the country. In this case, TCS at 5% will be applicable on the Rs 3 lakh. (Rs 10 lakh minus Rs 7 lakh) and tax collected will be Rs 15,000.
How can I pay TCS on tour package?
The TCS so collected by the Tour Operator for sale of overseas tour package needs to be deposited by the tour operator with the Union Government within the prescribed time. The tax so deposited will be available as tax credit to the buyer against this annual income tax liability.
Is TCS mandatory for travel agents?
For overseas travel, the individual travelling abroad has to bear TCS. Traveller or the person whose PAN is being used to remit money abroad has to pay TCS. … When remitting, in addition to all documents, travel agent will give remittance company TCS challan and declaration.
On which amount TCS is applicable?
Where transaction value exceeds Rs 50 lakh and buyer’s turnover exceeds Rs 10 crores in the earlier year, TDS would apply over TCS. For sale transactions involving motor vehicle, tendu leaves, scrap, etc., TCS continues to apply.
Is TCS applicable on foreign remittances?
As per income tax laws, TCS will be applicable on foreign remittances under the Reserve Bank of India’s (RBI) LRS if the total amount remitted exceeds Rs 7 lakh in a financial year. So, if the remittance amount does not exceed Rs 7 lakh in a fiscal, then you will not have to pay TCS.
What is TCS for international transaction?
Tax Collected at Source (TCS) on LRS transactions is a regulatory requirement amended under the section 206C of Finance Act 2020.
Is there any tax on foreign remittance?
The Finance Minister, in the last financial year had introduced a Tax Collected at Source (TCS) of 5% on all outward remittances above ₹7 lakh. The Finance Minister, in the last financial year had introduced a Tax Collected at Source (TCS) of 5% on all outward remittances above ₹7 lakh.