The put up NRIs need no longer pay 5% TCS on tour package in India appeared first on TD (Travel Daily Media) Travel Daily.
In an enormous transfer to spice up journey in India, the Indian authorities has stated home tour operators are actually not required to gather tax on sale of abroad tour packages to non-resident people visiting India. The Central Board of Direct Taxes (CBDT) has relaxed the supply of Tax Collected at Source of 5% underneath part 206C(1G) of the Income Tax Act, 1961.
Section 206C (1G) of the Income Tax Act, 1961 offers for the gathering of tax by a vendor of an abroad tour program package from a purchaser, being an individual buying such a package, on the fee of 5% of the quantity of the package.
The CBDT stated representations have been obtained from home tour operators who have been going through difficulties in assortment of tax from non-resident people visiting India who have been reserving abroad tour package from such home tour operators.
“Since such persons may not have a PAN, tax is required to be collected at higher rates. Further, such non-residents may find it difficult to furnish their ITR and claim refunds,” the finance ministry stated in an announcement. The rest will likely be prolonged to a purchaser being a person who shouldn’t be a resident in India in phrases of clause (1) and clause (1A) of part 6 of the Act and who’s visiting India.
Experts name this a welcome step and stated the transfer would encourage the journey bookings from India.
The put up NRIs need no longer pay 5% TCS on tour package in India appeared first on Travel Daily.