TCS on foreign remittance through Liberalised Remittance Scheme:
Who will collect the TCS?
An authorised dealer receiving a excess of an amount or an aggregate of amounts of seven lakh rupees or more in a financial year for remittance out of India under the LRS of RBI, shall be liable to collect TCS.
Rate of TCS u/s 206C(1G):
- An authorised dealer received an excess of Seven lakh rupees said amount from a buyer being a person remitting such amount out of India, at the rate of 5%.
- In non-PAN/Aadhaar cases the rate shall be 10%.
Exceptions to TCS collection:
This section will not be applicable in following cases:
- If the buyer is liable to deduct TDS under any other provisions and has deducted
- If a buyer is CG, SG, an embassy, a high commission, a legation, a commission, a consulate, the trade representation of a foreign state, a local authority or any other person as notified by CG
TCS on selling of overseas tour package:
Who will collect TCS?
A seller of an overseas tour program package who receives any amount from any buyer, being a person who purchases such package, shall be liable to collect TCS
Rate of TCS:
- TCS at the rate of 5% on selling of overseas tour package
- In non-PAN/ Aadhaar cases the rate shall be 10%.
- There is no monetary limit for this transaction, irrespective of any amount TCS must be collected by seller of that package
Exceptions to TCS collection:
This section will not be applicable in following cases:
- If the buyer is liable to deduct TDS under any other provisions and has deducted.
- If a buyer is CG, SG, an embassy, a high commission, a legation, a commission, a consulate, the trade representation of a foreign state, a local authority or any other person as notified by CG
Important Definitions under this Section 206C(1G):
Authorised Dealer
“Authorised Dealer” is proposed to be defined to mean a person authorised by the Reserve Bank of India under sub-section (1) of section 10 of Foreign Exchange Management Act, 1999 to deal in foreign exchange or foreign security.
Overseas tour program package
“Overseas tour program package” is proposed to be defined to mean any tour package which offers 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 expense of similar nature or in relation thereto.
