Quick Summary
The Travel Agents Association of India (TAAI) has made a plea to the Indian government to reconsider or delay the implementation of the Tax Collection at Source (TCS) on foreign remittances, which is set to become applicable from October 1. The government has raised the TCS on foreign remittances under the Liberalised Remittance Scheme (LRS) from 5 percent to 20 percent, and this will apply to various international transactions, including international travel, sending money abroad, and other rem
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FAQ :
TAAI is urging the Indian government to either abolish the Tax Collection at Source (TCS) on overseas tour packages or at least defer its implementation until the next financial year.
The new TCS rate on foreign remittances is set to become applicable from October 1.
The government has increased the TCS on foreign remittances under the Liberalised Remittance Scheme (LRS) from 5 percent to 20 percent.
TAAI is concerned about potential business loss, a competitive disadvantage for Indian tour operators compared to foreign ones, difficulties in monitoring limits, ambiguity with credit card payments, and risks to passengers using overseas companies.
TAAI believes the TCS, along with existing GST, creates a double blow for Indian tour operators engaged in outbound tours, making them less competitive against overseas operators who don't face these taxes.
The TCS applies to various international transactions, including international travel, sending money abroad, and other remittances.
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