<p>The government has exempted tour operators from collecting taxes from non-resident Indians visiting India and booking their overseas tour package from the country.</p>.<p>Currently, domestic tour operators are required to collect 5 per cent tax collected at source (TCS) on sale of overseas tour packages.</p>.<p>The Income Tax Act provides for collection of tax by a seller of an overseas tour package from a buyer at 5 per cent of the amount of the package.</p>.<p>The Central Board of Direct Taxes (CBDT) has received representations from domestic tour operators who were facing difficulties in collection of tax from non-resident individuals visiting India who were booking overseas tour packages from them.</p>.<p>Since such persons may not have a PAN, tax was required to be collected at higher rates. Further, such non-residents may find it difficult to furnish their ITR and claim refunds, the CBDT said.</p>.<p>"A domestic tour operator is not required to collect tax on sale of overseas tour package to non-resident individuals visiting India," the CBDT has said.</p>.<p>Nangia Andersen LLP Partner Neeraj Agarwala said the purpose of the TCS was to collect information and monitor tax compliances of high spending individuals.</p>.<p>However, the way the provisions were drafted, tour operators were even required to collect taxes from non-residents, who are otherwise not taxable in India, at the time of booking their return tickets from India.</p>.<p>"This is a welcome step and would encourage the travel bookings from India," Agarwala added.</p>.<p><strong>Watch latest videos by DH here:</strong></p>
<p>The government has exempted tour operators from collecting taxes from non-resident Indians visiting India and booking their overseas tour package from the country.</p>.<p>Currently, domestic tour operators are required to collect 5 per cent tax collected at source (TCS) on sale of overseas tour packages.</p>.<p>The Income Tax Act provides for collection of tax by a seller of an overseas tour package from a buyer at 5 per cent of the amount of the package.</p>.<p>The Central Board of Direct Taxes (CBDT) has received representations from domestic tour operators who were facing difficulties in collection of tax from non-resident individuals visiting India who were booking overseas tour packages from them.</p>.<p>Since such persons may not have a PAN, tax was required to be collected at higher rates. Further, such non-residents may find it difficult to furnish their ITR and claim refunds, the CBDT said.</p>.<p>"A domestic tour operator is not required to collect tax on sale of overseas tour package to non-resident individuals visiting India," the CBDT has said.</p>.<p>Nangia Andersen LLP Partner Neeraj Agarwala said the purpose of the TCS was to collect information and monitor tax compliances of high spending individuals.</p>.<p>However, the way the provisions were drafted, tour operators were even required to collect taxes from non-residents, who are otherwise not taxable in India, at the time of booking their return tickets from India.</p>.<p>"This is a welcome step and would encourage the travel bookings from India," Agarwala added.</p>.<p><strong>Watch latest videos by DH here:</strong></p>