What counts as an overseas tour package
An overseas tour programme package is a package that offers a visit to a country or countries outside India and includes travel, hotel stay, boarding, lodging or similar expenses. A standalone air ticket or a hotel booking on its own is generally not a package.
When and how much to collect
TCS is collected when the agency receives payment from the buyer or debits the buyer’s account, whichever is earlier. The rate depends on the amount and on whether the buyer has furnished a PAN: a lower rate applies up to a threshold, and a higher rate applies beyond it. Rates and thresholds are set by law and have changed several times, so check the current values before you invoice.
Tax rates, thresholds and rules change through notifications and the annual Finance Act. Use this guide to understand the process, and confirm the current position with your chartered accountant before filing.
The TCS process, step by step
- Check the saleConfirm that the booking is an overseas tour package and capture the buyer’s PAN.
- Compute TCSApply the current rate to the package amount, taking the threshold into account.
- Collect and invoiceCollect TCS with the payment and show it on the invoice.
- Deposit the taxDeposit the collected TCS with the government by the due date.
- File the quarterly statementReport collections in the quarterly TCS statement.
- Issue certificatesGive each buyer a TCS certificate so they can claim the credit.
TCS in SYSTACC
SYSTACC prepares TCS reports from the same daily transactions as the invoices, so the amount collected on each package, the buyer and the period are already together when the quarterly statement is due.
