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Tax collected at Source(TCS) on tour operator

Ashwin Jain 
on 19 February 2020


Do you know that Budget 2020 cast an additional burden on Tour operator to collect additional Tax from the person who buys the "Overseas tour program" package from Tour Operator from 01st April,2020?

Whether all person will be required to collect TCS or only specified person?

Every person who is being a seller of an overseas tour program package, who receives any amount from a buyer, shall collect tax at sources at a specified rate as below:

  • If a buyer furnishes his PAN then Tax would be collected at the rate of 5% and in case of Non-PAN would be collected at the rate of 10%.

Now the main question comes what do you mean by the "Overseas tour program package"?

  • Section 206C defines the term "Overseas tour program package" means any tour package which offers a visit to a country or countries or territory or territories outside India and includes expenses for travel or hotel stay or boarding or lodging or any other expenditure of similar nature or in relation thereto"

Is there any threshold limit for Overseas Tour Operator to collect TCS?

  • No, there is no threshold limit for Overseas Tour Operator to collect TCS.

Is there any statement which tour operator is require to furnish to income tax like TDS Return?

  • Yes, tour operator is required to furnish Quarterly TCS Returns just like TDS Returns

How a person will get credit of TCS collected by tour operator?

  • Credit for Tax Collected at Sources (TCS) on Overseas Tour Package is duly provided to buyer as like TDS Credit.
  • The buyer can claim the credit at the time of filing their income tax return.

Whether am I liable to collect TCS as a Tour Operator if my buyer is deducting TDS under any provision of Income Tax Act?

  • No, if your buyer is deducting TDS under any provision of Income Tax then as a tour operator you are not liable to collect TCS from him.

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