InvestorQ : What are the new rules for deducting TCS on foreign remittances to tour operators?
Ishita Jain made post

What are the new rules for deducting TCS on foreign remittances to tour operators?

Answer
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vani Patil answered.
4 weeks ago


The rule to levy TCS on foreign remittances was announced in the Union Budget 2020 but shall be applicable from 1.10.2020. As per the notification, any amount sent abroad for buying foreign tour packages as well as every other foreign remittance over will attract Tax-collected at source (TCS), unless the remittance is from an income which was already liable for tax-deducted at source (TDS).

Also, in case of education-related foreign remittances which are funded by loans, the applicable threshold for deducting TCS would be Rs. 7 lakhs. One shall be liable to deduct TCS at the rate of 5% when APN is quoted, otherwise, the applicable rate will be 10%.

As per the Liberalised Remittance Scheme (LRS) of RBI, an individual can make foreign remittances up to $2,50,000 every year. If one has already paid TDS and still TCS is levied, he can claim a refund of the TCS paid.