Key Points
With the upcoming implementation of the new Tax Collection at Source (TCS) on foreign remittances scheduled for October 1, the Travel Agents Association of India (TAAI) has made an eleventh-hour appeal to the government..
The Travel Agents Association of India (TAAI) has written to Finance Minister Nirmala Sitharaman, making a plea for the elimination of Tax Collection at Source (TCS) on overseas tour packages..
In a letter addressed to the Finance Minister, TAAI President Jyoti Mayal expressed concerns that TCS poses a significant challenge for the travel industry and could result in a substantial portion of business shifting to foreign tour operators..
In the letter, the association also pointed out that the Reserve Bank of India and banks lack the necessary infrastructure to effectively maintain and monitor the limits of Rs 7 lakh per traveler, and there is currently no mechanism in place to track these limits.. There is still ambiguity on the payments made for such packages through credit cards overseas, it said...
She lastly urged the finance minister to abolish the TCS as a whole on overseas tour packages or at least defer it until the next financial year so that a detailed discussion can be carried on the subject...
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