Indian tour operators breathe sigh of relief
The Indian Association of Tour Operators (IATO) expressed gratitude to the union government for partial relief for tour operators. The union government, in particular the Finance Ministry, withdrew an increase of Tax Collection at Source (TCS) on overseas tour packages which will remain in effect until September 30, 2023.
In addition, the TCS percentage increase from 5% to 20% on amounts up to Rs 7 lakh per annum has also been withdrawn. IATO also thanked the Minister of Finance and Secretary Revenue for considering non-applicability of TCS on an amount of Rs.7 lakh per person per annum on overseas tour packages. While appreciating the government’s decision, Mr. Rajiv Mehra, President of IATO, said: “Though we are happy with this roll back, our long-standing demand is that the TCS should be reduced to 2.5%, as the main objective of the government is to bring more into the tax net.