The first person who sells overseas travel services to traveller (whose PAN is used for LRS) will have to collect and discharge TCS. Every subsequent movement of money in India will be: Invoice value + TCS payment challan (collected and paid by first travel agent).
Who is applicable for TCS?
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 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.
What is the new rule of TCS?
WHAT IS THE NEW TDS RULE? The CBDT said the rate of TDS or TCS will be higher for people who have not filed income tax returns for two years. TDS or TCS will be charged at double the rate specified in the relevant provision of the Income Tax Act or 5 per cent.
What is TCS charge?
Tax collected at source (TCS) is the tax payable by a seller which he collects from the buyer at the time of sale. Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the purchasers.
What is TCS tax for travel agents?
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.
Is TCS applicable for NRI?
Under Section 206C(1G), TCS is not applicable on money remitted by NRIs from their NRO account to NRE/ foreign account. Hence, NRIs can easily remit their Indian earnings, like pension, dividend, salary, rent, investment, profits from businesses permitted for repatriation, distribution from any type of deposits, etc.
Is TCS refundable?
Yes, TCS can be claimed as refund in bank account.
What is TCS tax for Maldives?
According to the Budget documents, a seller of an overseas tour package, who receives any amount from any buyer, shall be liable to collect TCS at the rate of 5 per cent. In non-PAN/Aadhaar cases, the rate shall be 10 per cent.
Is TDS applicable on tour package?
1. IF PAYMENTS FOR PURCHASE OF TICKETS ARE MADE TO AIRLINES OR IF YOUR TOUR OPERATOR IS A TRAVEL AGENT TDS IS NOT APPLICABLE.
What is TCS limit?
Calculation of TCS and effective dates
A seller is required to collect tax at source at 0.1% on receipt of consideration of value exceeding Rs.50 lakh in a financial year from the buyer. (This rate is reduced to 0.075% till 31st March 2021 due to COVID-19).
On which amount TCS is calculated?
TCS to be calculated on sales return (sales return order or sales credit memo) For example, sales return from customer for INR 10,000 on which 1% TCS is applicable for Nature of collection “Scrap”.
Can I claim TCS on car purchase?
Claiming Tax Collected at Source on Car purchase is easy in 2021. If the Ex-Showroom cost of the car exceeds 10 lacs. Then the showroom charges TCS – tax collected at source to customers. But you can easily claim the amount back while filing the next FY income tax.
Who is eligible for TCS in GST?
TCS applies only if the operators collect the consideration from the customers on behalf of vendors or suppliers. In other words, when the e-commerce operators pay the consideration collected to the vendors they have to deduct an amount as TCS and pay the net amount.
What is the due date for payment of TCS?
TDS & TCS Payment Deposit Due Dates for Govt & Non-government. The due date for depositing TCS is the 7th of next month. ii) If paid through book-entry- Same day i.e. the day on which TDS deducted.
What is difference between TDS and TCS?
TDS is the tax which is deducted on a payment made by a company to an individual, in case the amount exceeds a certain limit. TCS is the tax which is collected by sellers while selling something to buyers. … TCS deduction is applicable on sales of goods like timber, scrap, mineral wood, and so on.