How is TCS calculated on tour packages?

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 can I pay TCS on foreign tour packages?

 TCS is applicable irrespective of the mode of payment, be it cash, debit from the bank account, credit card, or intermediaries like PayPal.  Residents or Non-Residents, companies or firms, all have to pay TCS on tour packages, if the booking is done from India.

How do travel agents pay TCS?

Traveller or the person whose PAN is being used to remit money abroad has to pay TCS. For overseas education, the parent or the student has to pay TCS. When remitting, in addition to all documents, travel agent will give remittance company TCS challan and declaration.

How do I claim TCS on foreign remittance?

If you’re unable to adjust the TCS amount, you can claim a refund to your account directly. Any TCS paid for foreign remittance will be reflected in the Form 26AS of the remitter. You will get a TCS certificate from the financial institution or Forex Company who collected the tax.

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What is TCS tax for Maldives?

WHAT IS THE RATE OF TCS? Tax shall be collected by seller of an overseas tour programme package @ 5% if buyer has furnished his PAN, otherwise tax shall be collected @ 10% in accordance with section 206CC.

What is current TCS rate?

TCS Rates for Financial Year 2021-22(A.Y.2022-23)

Section Nature of Payment Rates
206C (1) Sale of Tendu Leaves 5.00%
206C (1) Sale of Timber obtained under a forest lease or other mode 2.50%
206C (1) Sale of Any other forest produce not being a Timber or tendu leaves 2.50%

What is the present TCS rate?

In May 2020, the government reduced TDS and TCS rates for interest income, dividend income, rent payments and other non-salary payments by 25%.

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Nature of receipts Section of the Income-tax Act TCS rates effective from April 1, 2021
Sale of timber obtained by any other mode 206C(1) 2.50%

Is TCS refundable?

Yes, TCS can be claimed as refund in bank account.