TCS on foreign Tours

Section 206C (1G) of the Income Tax Act, 1961: TCS on foreign Tours

1. Any person selling overseas tour package has to collect TCS @ 20% from the buyer (w.e.f. 01-06-2023)
2. When to collect ?
   • At the time of debit in books or receipt of money whichever is earlier
3. Overseas Tour package ?
   • It is package which offers visit to a country or territory outside India It includes expenses on travel, Hotel lodging and boarding, site seeing etc
4. The provisions of this section will not apply if buyer is liable to deduct TDS on such transactions and has deducted it
5. So actual deduction by buyer is necessary , else TCS applies
6. Section not applicable if buyer is Government or local authorities
7. Note : The section applies only if Foreign tour starts from India.
8. The section applies even if buyer is non resident.