Applicable at the rate of 5% on foreign remittances made through Liberalised Remittance Scheme (LRS) of RBI, Tax Collection at Source (TCS) has created apprehension among travel agents.
What is TCS tax in tourism?
As per the new law, the funds sent abroad exceeding Rs 7 lakh in a financial year are subject to 5% TCS. For example, if you remit Rs 23 lakh in FY 2021, 5% will be calculated on the amount exceeding the existing threshold(7 lakhs) i.e. – 15 lakhs. In non-PAN/Aadhaar cases the rate shall be ten per cent.
What is the tax rate of TCS?
Goods covered under TCS provisions and rates applicable to them
|Type of Goods||Rate|
|Minerals like lignite, coal and iron ore||1%|
|Bullion that exceeds over Rs. 2 lakhs/ Jewellery that exceeds over Rs. 5 lakhs||1%|
|Purchase of Motor vehicle exceeding Rs. 10 Lakhs||1%|
|Parking lot, Toll Plaza and Mining and Quarrying||2%|
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.
How can I pay TCS on tour package?
Seller is required to collect the Tax at the time of Debiting the amount payable by the buyer or at the time receipt of the amount from the buyer, whichever is earlier. Please Note that if the Buyer is a Non-Resident who does not have Permanent Establishment in India, TCS will be made @5% only.
Whats is TCS?
Tax Collected at Source (TCS) is a tax payable by a seller which he collects from the buyer at the time of sale of goods. Section 206 of the Income Tax Act mentions the list of goods on which the seller should collect tax from buyers.
How do I claim my TCS refund?
Steps to file ‘TDS and TCS credit received’ on GST portal
- Step 1: Login toGST portal.
- Step 2: Go to ‘Services’ > ‘Returns’ > ‘Returns Dashboard’
- Step 3: Select the return period of GSTR-3B being filed and proceed to ‘TDS/TCS credit received’ tile.
Who is eligible for TCS tax?
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 refundable?
Yes, TCS can be claimed as refund in bank account.
What is TCS tax on foreign remittance?
According to the recent amendments in the Finance Bill (2020), under the Liberalised Remittance Scheme (LRS) that came into effect from 1 October 2020, TCS at the rate of 5% will be imposed on the money remitted outside India.
Is TCS applicable on flight tickets?
No. Simple sale of air tickets will not attract TCS unless or until it is a complete package itself. If the person has bought overseas a tour package now but will be travelling after 01.04. 2020.
How do I claim TCS refund 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.
What is Section 206CC?
♦ Section 206CC of Income Tax Act, 1961 has been inserted to provide that any person whose payments are subject to tax collection at source i.e. the collectee, shall mandatorily furnish his PAN to the collector failing which the collector shall collect tax at source at higher of the following rates – a.
Is TDS applicable on Travelling expenses?
Is TDS deducted on traveling expenses? No, TDS is not deducted on traveling expenses.
What is Chapter XVII B of Income Tax Act?
In exercise of the powers conferred under section 119 of the Act, the Board has decided that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVII-B …