We are all aware that taking an international trip is most likely to become more expensive from April 1, 2020. Budget 2020 proposed to amend section 206C to levy TCS on overseas remittance and for sale of an overseas tour package. According to this, while buying an overseas travel package or purchasing foreign currency above Rs 7 lakh, you will be liable to a tax collection at source (TCS).
Given the challenging times that we are facing with almost all overseas travel plans put on hold by people, conventions cancelled and even big sports events’ postponed, this move will only deter people further to travel and will make the survival of the Travel Agent tougher. The Travel Agents and Tour Operators are already struggling to keep their businesses afloat, given the precarious situation caused by Covid-19, and thus, an additional weight of TCS will only make matters worse.
Standing by its commitment to fight for the cause of the industry, the office bearers of OTOAI (Outbound Tour Operators Association of India) today met up with Mr. Kamlesh Varshney, Joint Secretary TPL, Ministry of Finance and explained the situation – both at present and one that will arise after TCS implementation, in detail.
“We have requested to the Ministry of Finance that TCS should not be implemented and most-certainly be deferred in the present situation. After listening to all our reasoning, we have been assured that our request will be positively looked into. We are hopeful that the Ministry will understand the plight of the travel agents and take a positive decision with regards to deferment of TCS,” elaborated Mr. Riaz Munshi, President, OTOAI.
The OTOAI delegation comprised Mr. Riaz Munshi, President, OTOAI; Mr. Shravan Bhalla, General Secretary, OTOAI; Mr. Guldeep Singh Sahni, Former President, OTOAI and Mr. Rajeev Sabharwal, Former Treasurer, OTOAI.
