The Ministry of Finance has informed that it has Relaxes provisions of TCS Regarding Non-Resident Individuals (NRIs) Visiting India.
The step has been taken as keeping in view the difficulties in collection of tax from non-resident individuals visiting India who were booking overseas tour package from such domestic tour operators.
Currently, a seller collects tax of an overseas tour programme package from a buyer, being a person purchasing such package, at the rate of 5% of the amount of the package.
In this regard, representations have been received from domestic tour operators, since such persons may not have a PAN, tax is required to be collected at higher rates. Further, such NRIs may find it difficult to furnish their ITR and claim refunds.
In order to remove such difficulties, the Government, has specified that a domestic tour operator is not required to collect tax on sale of overseas tour package to non-resident individuals visiting India.