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TCS on Overseas Travel Package


Whether it is applicable on B2B Transactions?
Eg If a Person A who is a travel agent sells a tour package to Person B who is also a travel agent . Person B in turn sells tour package to Customer C who will be a person actually travelling abroad. In such cases whether TCS is applicable on transactions entered between Person A and Person B?. Kindly check below explanation where it mentions Aadhar Card also (B2B Transactions do not have Aadhar Number). This would mean that intention and purpose of this section is to collect TCS from end customer. So whether B2B Transactions can be excluded from TCS present provision. ( Buyer not defined in Act )
This is so because Act mentions that If the Buyer of the Overseas Tour Programme Package quotes Permanent Account Number (PAN) or Aadhar Card Number, TCS will be made @5%, or else @10%. 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. Mode of payment has no relevance as far as TCS provisions are concerned, i.e. it doesn't matter whether Buyer pays for Tour by Cash or by Cheque or by any other mode.



Bajaj Finserv

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