Dear Sir , We are a Tour Operator Company . We organise International Tours for our Corporate Clients . Recently there is an amendment which says TCS on International Tour packages shall be charged at 20% instead of 5% . We generally collect payment from the companies ,as we organise these tours for their employees and companies pay for them , and then remit payments to overseas suppliers to organise the tour . Query : 1. If TCS shall be applicable only if the amount of tour package is above Rs 7,00,000/- 2. If a company is deducting TDS on our payment considering it as a contractual service ,so they need not to pay the TCS .We shall not charge TCS to them if they are deducting TDS on our payment Requested please clarify
Increased rate of TCS@20% for purchase of overseas tour package would be applicable from 01.10.2023
1. No. Till 30.09.2023 rate would be 5% without any threshold limit. w.e.f 01.10.2023, 5% till Rs. 7 lacs and 20% thereafter
2. Yes you are correct
For detailed discussion you may opt for phone consultation
The date for applicability of amendment has been extended to Oct. 2023. Yes TCS is applicable only if amount exceeds 7 lakh
Further, as per below mentioned proviso if buyer is deducting TDS you need not collect TCS:
Provided also that the provisions of this sub-section shall not apply, if the buyer is,—
(i) liable to deduct tax at source under any other provision of this Act and has deducted such amount;
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Thank you.
Hi
TCS is not applicable in your case since company making payment to you for tour is already deducting TDS while making payment
Hello,
Hope you are doing well!!
1) Until 30.09.2023: The TCS rate for the purchase of overseas tour packages will be 5% without any threshold limit. This means that regardless of the package value, a flat rate of 5% will be applicable for TCS until this date.
Starting from 01.10.2023: The TCS rate will change to 5% for tour packages with a value below Rs. 7 lakhs, and 20% for packages with a value exceeding Rs. 7 lakhs
2)If the buyer has fulfilled their TDS obligations on the payment made to you, you would not be required to collect TCS on the transaction. The TDS deducted by the buyer would be considered sufficient for meeting their tax obligations, and you would not need to collect TCS separately.
Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.
Thank you.
Shubham Goyal
