Best answer: How can I pay TCS on overseas tour package?

How do I pay TCS for international travel?

 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.

What is TCS under LRS?

In terms of the amendment to Section 206C of the Income Tax Act, 1961, (Act), Authorized Dealers are liable to collect Tax Collected at Source (TCS) on transactions under Liberalised Remittance Scheme (LRS). … International transactions through Debit Cards (including Dynamic Currency Conversion Transactions).

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.

Can I claim TCS on LRS?

TCS is applicable on all LRS transactions. LRS permits Rupee loan and gift to a NRI/PIO who is a close relative. In this case, for such rupee transactions, TCS will be applicable. DCC transactions on debit cards are also applicable for TCS charging.

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Can we claim TCS on foreign remittance?

Foreign remittance above Rs 7 lakh will attract TCS, provided the tax has not already been deducted at source (TDS) on that same amount. TCS will be applicable on the amount if it is in excess of Rs 7 lakh in a financial year and not on the total amount.

How is TCS calculated on foreign remittance?

1) TCS of 5% is deducted only on the amount above 7 lakhs. For example, if you remit Rs 15 lakh in FY 2021, 5% will be calculated on the amount exceeding the existing threshold i.e. – 8 lakhs. Therefore, Rs 40,000 will be deducted as TCS. 2) Any remittance made in FY 2021 will count towards the 7 lakh threshold.

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.

Are foreign remittances taxed in India?

It is perfectly legal to send money to your parents in India and they will not incur any tax on the transferred amount. … The money received in an Indian bank account from a relative abroad is known as inward remittance and these remittances are governed by the Foreign Exchange Management Act (FEMA).

How do I get my TCS back?

Steps to file ‘TDS and TCS credit received’ on GST portal

  1. Step 1: Login toGST portal.
  2. Step 2: Go to ‘Services’ > ‘Returns’ > ‘Returns Dashboard’
  3. Step 3: Select the return period of GSTR-3B being filed and proceed to ‘TDS/TCS credit received’ tile.
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Is TCS mandatory for travel agents?

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).

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.

Is TDS applicable on hotel room rent?

Circular No.

Answer : Payments made by persons, other individuals and HUFs for hotel accommodation taken on regular basis will be in the nature of rent subject to TDS under section 194-I. Above circular specifies that TDS on payment of Hotel rooms shall be applicable wherein such rooms are taken on regular basis.