1. Why TCS is levied?
As per section 206C(1G), the TCS would be applicable on all foreign travel related expenditure. The
overseas tour package has been defined to include more than one travel product sold to passengers for
traveling outside India. The travel agent / Guest would be required to collect/Pay TCS on the overseas
tour package as well as a single travel product at the rate mentioned below:
| Particular |
Standalone Hotel (Single travel product) |
Overseas tour package |
| Cumulative remittance under LRS against PAN does not exceed 7 Lac in the financial year |
NIL |
5% |
| Cumulative remittance under LRS against PAN exceeds 7 Lac in the financial year |
20% |
20% |
2. Whether purchase of international travel ticket or hotel accommodation on standalone
basis is purchase of overseas tour program package?
The overseas tour package is defined as to mean any tour package which offers visit to a country or
countries or territory or territories outside lndia and includes expenses for travel or hotel stay or
boarding or lodging or any other expenditure of similar nature or in relation thereto.
It is clarified that purchase of only international travel ticket or purchase of only hotel
accommodation, by in itself is not covered within the definition of 'overseas tour program package'. To
qualify as 'overseas tour program package', the package should include at least two of the followings:-
(i) international travel ticket,
(ii) hotel accommodation (with or without food)/boarding/lodging,
(iii) any other expenditure of similar nature or in relation thereto
3. Since there are different TCS rates on LRS for the first six months and next six
months of the financial year 2023-24, whether the threshold of Rs 7 lakh, for the TCS to become applicable
on LRS, applies separately for each six months?
No. The threshold of Rs 7 lakh, for the TCS to become applicable on LRS, applies for the full financial
year. lf this threshold has already been exhausted; all subsequent remittances under LRS, whether in the
first half or in the second half, would be liable for TCS at applicable rate.
4. Is there any option to enter multiple PAN while booking?
Yes, Agent / Guest will have an option to enter multiple PAN of passengers in the booking page and
mention the ratio of TCS apportionment.
5. Will TCS be an additional cost?
No, TCS is fully adjusted against Income Tax liability of the passenger for the respective
financial year and it will not be additional cost to passenger.
6. Do I need to submit any proof or documents to Tripzen?
Yes, We would require the proof of deposit of TCS along with TCS certificate at the end of every
quarter for the booking exceeding 7 lac . However, travel agent is requested to ensure the ready
availability of TCS certificate along with any other documents as may be required time to time.
7. Which PAN should be used while booking?
The PAN entered should be valid and operative. The PAN entered must belong to the traveller/
Corporate as applicable (not the PAN of travel agent)
8. Whether PAN provided should be linked with Aadhaar?
As per the Government guideline the deadline to link PAN with Aadhaar was 30th June 2023,
post which for any individual who has failed to link their PAN-Aadhaar, PAN has become
inoperative. Hence, it is requested to ensure that the PAN is linked with Aadhaar
9. Should we take any declaration from traveller?
Yes, you must obtain the following declaration from the traveller:
-
Declaration from the traveller mentioning the quantum of LRS limit against his/her PAN
used by the traveller during the current financial year
-
Declaration from the traveller that the LRS limit against his/her PAN used by the
traveller during the current financial year has not exceeded the limit of USD 250,000 or
limit approved by RBI.
-
Declaration must be taken from passenger whose PAN details is mentioned while booking
that his LRS limit would be utilised for the travel of other passengers. This declaration
would be applicable only in case of multiple travellers booked with Single/ Multiple PAN
-
Declaration from corporate in case of corporate booking that Corporate has authorised
the Travel Agent to undertake the booking and the travellers are the employee of the
corporate for whom the expense would be borne by such corporate
