Flyremit TCS 2026

本站添加: 2026-05-17

[00:00:05]It is live now. I think the voice is there right now.

[00:00:21]Can you hear me?

[00:00:23]>> [snorts] [clears throat] >> With what? With headphones?

[00:00:40]Can you hear me now?

[00:00:47]Okay.

[00:00:49]We wait for people to join in.

[00:01:02]Okay.

[00:02:06]>> [clears throat] >> Thank you for joining in. Uh >> [clears throat] >> And sorry for the disconnect on the previous one. Not too sure what happened.

[00:02:22]But, uh we're doing the same things now, and then now the voice is coming.

[00:02:32]Okay, we'll just wait for another 1 minute, and then we'll start. And I'll ensure that I'll wrap it up uh within 30 minutes, and then we will open this up for question and answers.

[00:02:42]So, it's going to be question and answers beyond me. And uh we will just give you an update on what the TCS on travel is uh for the current financial year.

[00:02:55]Thank you for waiting. Thank you for joining. A lot of people are saying joining in.

[00:03:00]Uh If you can put in the chat a hi, and the city where you're joining in, so that we know you have to come out there, I am.

[00:03:13]And uh from which city uh are you from?

[00:03:23]I hope the voice is clear. And Visit World Holidays. Welcome to this live broadcast. We will start in just a couple of seconds.

[00:03:40]People from Mundi, uh that's in Himachal. Good to know.

[00:03:44]People from Pune. Nikhil is coming in from Pune.

[00:03:48]Uh amazing.

[00:03:50]So, we have 50 people already on this uh on this webinar already. People from Mumbai, Navi Mumbai, Kerala, Guwahati, Pune, Ryan Holidays.

[00:04:00]Welcome.

[00:04:02]Ashish Jain from Archie Holidays Jaipur, welcome.

[00:04:05]Uh People from Chennai are joining in and I am going to start very soon. Uh very very quickly, quick update.

[00:04:17]Do you want this to be purely English or do you want it to be Hindi plus English?

[00:04:22]I can speak both.

[00:04:24]Uh thank you Abhishek for joining in.

[00:04:27]Uh thank you for from Viven Tours from Hyderabad. We've got a comment for English.

[00:04:33]May Hindi be bolunga be beech mein so that we have an impactful discussion.

[00:04:38]Thank you for joining in.

[00:04:42]All right, let's start. I'll share my screen.

[00:04:49]And we will be able to start.

[00:04:55]All right.

[00:04:59]Okay, I hope you can see my screen.

[00:05:06]I'll just get a confirmation on that.

[00:05:14]All right, my screen is visible. So, here is the webinar for 2026 on TCS rules on cross-border remittances.

[00:05:24]Let us not get confused with this element. Bhai bhaiyo aur behno aur mere dosto It has been 6 years that TCS has come into place and we still have some confusion in the people's minds. Uh that is why we have kept this webinar and we will keep this webinar to a very short period so that you get the exact information what is for you and that's about it.

[00:05:50]The objective of this webinar is not to make you experts at TCS, but only to get you transactional information on TCS and how do you apply it in your regular business. We will stick to tour and travel business for this session. For other clauses of TCS, we probably can do a separate webinar.

[00:06:08]We do not have time in this one. We will stick to tour and travel. The travel remittances cross-border travel remittances TCS will be discussed in this session. We will give you a small introduction of what FlyRemit it is. We will take you through the TCS rules which have been implemented from the 1st of April 2026 under the new budget.

[00:06:32]What is the change and what is the impact on you will be discussed over here. The third element is how do you get back your TCS and a step-by-step approach for getting back your TCS. And the last thing is about a little bit more about FlyRemit and then we will open it up for question and answers. I have I will I have planned for 30 minutes on my talk and 30 minutes for the Q&A, but I will restrict myself to just about 15 minutes on my talk and so that we have a decent time for the Q&A session. So, let's get started.

[00:07:04]Who is FlyRemit? I hope all of you know what who FlyRemit is. FlyRemit has been here for a couple of years now. FlyRemit is your friend, partner, and advisor, and India's first dedicated digital outward travel remittance platform.

[00:07:18]Please note FlyRemit as of now is dedicated to doing travel remittances, so we are absolute experts at cross-border payments in a digital manner. We offer you a 100% paperless experience so that there's digital KYC and no branch visits.

[00:07:33]Real-time FX rates are displayed on the dashboard with live tracking tracking and everyone is given a personal account manager. This account manager works from Monday to Saturday, 10:00 a.m. to 7:00 p.m. So, yes, service yes, the platform home fly limit users clearly can specially for the travel and tour industry for travel agents, for travel consolidators, for travel website operators, B2C operators, B2B operators.

[00:07:58]We are mostly and mainly into B2B. We do not do any travel business of our own.

[00:08:04]We just are experts as cross border payments. 10,000 plus travel operators are working with us. 1,000 plus global suppliers DMC's have are working with us.

[00:08:13]Uh in the past 2 years, we have remitted $250 million.

[00:08:16]That's a couple of thousand crores.

[00:08:22]And then instantly we give you a swift on the platform itself. Let's get to TCS right away.

[00:08:27]Now, TCS on travel remittances.

[00:08:32]Is is favorable to us. The rules are favorable to us and the rules are becoming positive and less and less stringent.

[00:08:43]This is another update from the from the budget side, which is giving out ease in terms of transactions and have given simplified rules for doing TCS.

[00:08:58]Let's start from the beginning. TCS on LRS travel remittances.

[00:09:02]1st April 2026 go a change I had your TCS on travel remittances get rate pay change I had a matter of I don't get that what is LRS? What is TCS or 1st April go get what I had?

[00:09:18]What is LRS?

[00:09:20]But man generally but I get that LRS war RBI key regulation here FEMA key regulation here RBI key guidelines can that may this came a matter of a planner travel payments India to the world pay sector here. So, LRS is a liberalized remittance scheme which allows Indian residents, so people living in India, to remit up to USD 2 lakh 50,000. It comes up to about 2.2, 2.3 crores per financial year. Financial year first April to 31st of March. So liberalized remittance scheme is a scheme which allows Indian residents, so Indian citizens and Indian residents, to remit up to 2.5 lakh rupees per financial year for permitted current and capital account transactions.

[00:10:07]One second.

[00:10:17]All right, let's move on. So LRS limit first first April to 31st March that means between first April to 31st March you can use 2 lakh 50,000 dollars.

[00:10:28]The next first April to 2 the next 31st March you can use another 2 lakh 50,000 dollars.

[00:10:37]When you use LRS, when you use LRS what happens is the government has imposed some TCS on it. That means if you're using LRS you have to pay an advance tax when using the LRS quota of yours. What is that advance tax? That advance tax is called TCS. So tax collected at source is collected by the remitting bank or the remitting agencies like like FlyRemit or the tour operator at the point of transaction. So it is an advance tax which is fully adjustable against your final tax. Please remember this is also an important part. I am not going to go into details but I'm giving you the outline that the TCS that you pay is not an additional tax. Let's say your tax liability is 100 rupees and you have already paid TCS of let's say 2 rupees.

[00:11:25]Your final tax liability will become 98.

[00:11:28]That means 100 minus the advance that you have paid.

[00:11:33]That is what is the actual nature of TCS. That means it is not an additional tax. It is a advance against your original tax liability. I'll repeat myself. If your original tax liability for the full year is 100 rupees and you have already deposited TCS worth 2% TCS worth 2 rupees, that means you have to now discharge only 98.

[00:11:58]So, TCS whatever is paid can be adjusted by the pan holder, by the income tax payer. So, please tell your customers that it is not an additional tax. It is an advance tax which can be adjusted against their income tax liability. Now, what happened on the 1st of April 2020 when we told that this is the October 2020 TCS applicable here. So, from October 2020 onwards itself, this TCS regulation has come into place. It has undergone various changes and now from the 1st of April 2026 in the budget 2026, not 2025, there's a typo on my presentation. In the budget 2026, which is applicable for for the year 1st April 2026 to 31st March 2027, within this period there is a new rate of TCS which is applicable on the LRS transactions of overseas travel remittances. Now, overseas travel remittances go two part me divide here. I have concise my slides because of time positive. That's why there are two key categories which are affected. The first category is stand alone travel remittances. The second is bundled tour packages. This is a very important to understand. Please understand when you are remitting money, either you are remitting for an individual service which could be a hotel, which could be a sightseeing, which could be an attraction, which could be payments to a tour guide, or it could be entry tickets for for concert.

[00:13:24]If it is paid individually for only one service which is let's say just about hotel, just about transport, just about visa, just about one specific service, it will be called standalone travel remittances. So, here independent foreign exchange purchases you have got there, currency credit there, direct flights, yes, standalone hotel booking.

[00:13:45]I got that to that will be called standalone travel remittances. It's the regulation allowed here.

[00:13:50]The regulations for standalone travel remittances are separate. Now, let's move on to the bundled overseas tour package. Bundled overseas tour package means if you're combining two services, that is hotel plus land, flights plus hotel, hotel plus sightseeing. And usually the way DMCs operate and the way they give an itinerary, it is a bundled package. What it means that it includes hotels, it includes sightseeing, it includes tickets, it probably includes visa sometimes. It includes internal domestic flights within the the overseas destination. If it is all combined together and one invoice is generated and one remittance is made to the overseas DMC, then it is called the bundled overseas tour package. You bundled overseas tour package with such a big change I have had. And it is and that is why I say that the rules of TCS and LRS have gone simplification and have become simplified. Now, let's quickly go on and see what it is. Now, standalone travel remittances, which is non-package, I'm comparing the old versus the new rates as well. So, essentially I think up to 10 lakhs we tax needed. There was no TCS.

[00:15:04]Pre 1st April 2026, this is pre 1st April 2026 up to 10 lakhs there was 0%. Now, the what has happened, it is still 0%.

[00:15:16]That means what is effective for this financial year is that if you are doing a standalone travel remittance, which is just an individual hotel and individual service, up to 10 lakh rupees in a year worth of remittances per pan. Remember, it is per pan. So, up to 10 lakh rupees remittance per pan for a standalone service, the rate of TCS is still 0%.

[00:15:42]Now, above 10 lakh rupees So, very simply cumulatively for the full year. That means standalone services earlier. So, up TCS rate zero hoga. That's lucky over cumulatively remittances to see bank over other standalone service by the person for travel services. Or that's lucky over exceed then the rate applicable is 20%. So, if for remittances which are standalone cumulatively in the financial year 26-27 as they call it, if the remittance exceeds 10 lakh rupees per pan, 20% rate is applicable. If it is lower than 10 lakhs, the rate is is 0%. There is no change on this side. Let's move on to bundled overseas tour packages.

[00:16:45]We have just kept it simple, straightforward. You you're happy to take a screenshot of of these these this slide and the previous slide.

[00:16:53]This will give you the entire presentation on TCS. What is simplified here? I have not tried to confuse anybody. Now, come to the bundled overseas tour packages. Here as well, you got you earlier had two slabs, which is up to 10 lakhs and above 10 lakhs.

[00:17:09]The up to 10 lakhs 5% or 10 lakhs 20%.

[00:17:15]They've completely eliminated these slabs and they have done a very simple 2% flat on the entire value.

[00:17:23]That means if you're doing a bundled tour package which is land plus flights or usually a complete itinerary for the guests traveling which usually DMC's give there is a flat 2% TCS that the travel agent needs to collect over and above the invoice value.

[00:17:44]The slabs have been done away with. So let me recap very quickly. Standalone travel remittances here or 10 lakh and niche here the rate 0% here. 10 lakh upar here the rate 20% of TCS here. For standalone travel remittances which are individual hotels, individual flights, up to 10 lakh rupees previously as well the rate of TCS was 0%. Now also it is 0%.

[00:18:08]Previously for above 10 lakh rupees the rate was 20%. Now also it is 20%. For bundled overseas tour packages which are packaged itineraries which combine two travel services which probably would be in a hotel plus land uh sightseeing plus tickets, whatever it be.

[00:18:25]The rate has changed. There were slabs earlier which is up to 10 lakhs and above 10 lakhs. This has been done away with. This has been eliminated and there's a flat 2% charge which has come into place. That means if you're billing a bundled tour package worth 100 rupees the TCS will be 2% straight. It doesn't take into account you have done 10 lakhs or you have not done 10 lakhs. So on overseas tour packages bundled one 2% non-bundled one which is standalone less than 10 lakhs it is 0% more than 10 lakhs it is 20%.

[00:19:01]This is the entire gist of the new update. Everything else remains the same.

[00:19:08]Now just to see how TCS on tour packages changed over time.

[00:19:12]So, in Feb 2024, in Feb 2004, LRS was launched. 2015, the limit was increased to 2.5 lakhs on on the current account things. 2020, TCS was introduced. At that point time, it was 5% above 7 lakhs. Then in 2023, it was raised to 20%.

[00:19:33]2025, a big relief came in wherein up to 10 lakh limit they created a 10 lakh limit slab and 5% and 20% thresholds were created. And now in April 2026, that is what is applicable for you and me currently, the rate is 2% flat if it is a bundled package.

[00:19:52]If it is a standalone package, then the rate remains the same, that is up to 10 lakh rupees no TCS, zero TCS. Above 10 lakh rupees is 20% TCS.

[00:20:01]So, if you compare the new rate and the old rate, I am talking about the overseas tour package which is bundled up.

[00:20:08]Uh which is sorry, standalone over here.

[00:20:11]So, on 1 lakh, let's say you are doing a remittance of 15 lakh rupees. Okay, amount is 15 lakhs. Under the old rates, the on the first there will be 5% on the first 10 lakhs and there will be 20% on the amount above 10 lakhs. So, it was coming up to 1.5 lakhs. Now, with zero threshold on the bundled package on the bundled package, if you can see the zero the new limit which has come in on the bundled package which is the the second category.

[00:20:39]There's a flat 2% which will be charged.

[00:20:41]That means 1 lakh 50,000 multiplied by 2% which will come up to 15 lakh rupees multiplied by 2% will come up to 30,000 rupees which is flat 2%.

[00:20:53]So, as you can see, there's a huge amount of savings from the previous rates to the current rate. On a bundled package which is the most common service, most common type of remittance being done from India by Indian travel agents, Usually, it is a bundled package.

[00:21:10]As you can see on a 15 lakh rupees travel package, you are saving 1.2 lakh rupees. So, on the old rate, you have to pay 1.5 lakhs. Under the new rate, you have just you just have to pay 30,000 rupees. It's a huge saving.

[00:21:26]Now, the last and the most important thing under the TCS thing is to to make your customer understand. You can take a screenshot of this of this slide as well and keep it with you to give it to your customers so that they don't get afraid of TCS or they don't think the TCS is a burden on them. So, TCS collected at 2% or at whatever percent if it is under the standalone regime on tour cost is not a cost. It is advanced tax paid in the PAN holder's name, that is in the passenger's name, and you can claim it back. Please remember, TCS has to be collected from the traveler. It is not a burden on the travel agent or the travel consolidator or the travel advisor or the travel consultant. So, TCS is something which has to be paid by the traveler and claimed back by the traveler himself or herself. It is not an additional burden on the travel agent. Yes, the travel agent is being burdened with collection of this TCS and discharging this TCS to the government coffers.

[00:22:32]This is an additional responsibility of the travel agent, but there is no financial liability of the travel agent.

[00:22:38]Yes, there is expenses of filing this returns, which will which will be a burden on the travel agent, but the actual value of tax, that is actual value of TCS, that has to be collected by the from the traveler by the travel agent, it can be claimed back by the traveler. It has to be deposited by the travel agent. Let me repeat this. This sentence covers everything. I have not put a slide for that just because I want to keep the slides less so that you can use these slides as presentations for your own customers as well. So, TCS has to be collected from the PAN holder by the travel agent. So, the travel agent collects the money, the travel agent deposits the money to the government.

[00:23:25]It can be claimed back by the traveler on his PAN number.

[00:23:30]So, there is no additional liability on the travel agent. Also, there is no additional liability on the travel on the traveler as well. Because the traveler is paying certain amount of TCS and it is going to the government, the traveler can claim it back as part of his income tax returns as part as part of his total income tax liability as well. So, please remember, TCS collected at 2% or whatever percent on tour cost is not a cost.

[00:23:58]It is an advance tax paid in the name of the traveler and the traveler can claim it back.

[00:24:05]>> [cough] [clears throat] >> So, here, so TCS is collected by the travel agent. If the travel agent is not collecting it, then the bank through which you are doing the remittance will collect the TCS.

[00:24:23]What will the travel agent do? And what will the bank do? The travel agent, Flyremit kind of players as well as a bank, will collect the TCS and deposit it with the government under the name of the PAN holder.

[00:24:37]This will the data will also reflect in the 26AS. If you go to the income tax portal, if [clears throat] an individual taxpayer goes to the income tax portal, he can view his 26AS. In his 26AS, he can see a line item which is reflecting that what is the amount of TCS which has been collected by the travel agent and what is the amount that he has deposited. Now, that amount of TCS that the traveler pays, the PAN holder pays to the travel agent, that value will come in the 26AS form as well. So, on incometax.gov.in within a quarter, you can see that this data is updated.

[00:25:18]At the end of the year, uh when this TCS is being reflected on the 26AS, the PAN holder will receive form 133, which is an evidence that TCS has been paid. Using this form 133, the PAN holder can file his personal income tax return and claim this TCS back.

[00:25:41]And when his income tax return gets processed, >> [clears throat] >> if his his his calculations is correct and depending on the income tax department, if you are due a refund, the refund can come back to you or the TCS that you've paid, you'll get adjusted against your tax liability. So, step-by-step, the PAN holder, the traveler pays the TCS to the travel agent or to the bank or to Flywire Remit in cases [clears throat] there's no there's no travel agent in the middle.

[00:26:10]The travel agent, Flywire Remit or the bank will deposit this TCS onto the income tax department under the name of the PAN holder. The PAN holder can who also the traveler can verify this in his 26AS statement which comes which is available on his income tax login on incometax.gov.in.

[00:26:32]The PAN holder will also receive form 133, which is evidence that the the TCS has been collected and discharged to the government.

[00:26:41]When the PAN holder or the traveler files his income tax return, he can upload this form 133. He can he can he can utilize this form 133 and claim a rebate on his income tax liability or if his income tax liability is excessively paid, he can claim a refund on that value as well. How does the refund work? The refund is the income tax liability is computed by the income tax department and a direct credit comes into your bank account which you have given in your income tax return. So, the short of this is your TCS is not an additional cost neither on the traveler nor on the travel agent.

[00:27:20]Both of them that is not an additional cost. For the traveler, he can claim it back through this process. For the travel agent, it is collected from the traveler and paid to the government.

[00:27:29]There is no cost to the travel agent.

[00:27:32]Yes, there is a filing cost which is part of his regular cost of business. So, as simple as that, I will take you through the last three slides like very very quickly. If you are on a standalone travel remittance up to 10 lakhs, there is 0% TCS. Above 10 lakhs, there is 20% TCS. For bundled overseas tour packages, the slabs have been done away with. It's a flat 2% charge on the entire tour overseas tour package program.

[00:28:02]TCS is not an additional burden. It can be claimed back by the PAN holder. It is has to be paid by the PAN holder. It will be claimed back by the PAN holder.

[00:28:12]It is paid to the travel agent. The travel agent then pays it to the government. The travel agent does not bear the cost of TCS.

[00:28:22]What is the process of claiming it back for by the PAN holder? It is very simple. He will get a notification on the 26AS. He needs to get the form 133, file his income tax return, and get a refund if he's eligible for that. That is the end of my presentation. Very very simple, but there are I will take 5 more minutes to tell you a couple of things that are very critical.

[00:28:41]Remember the PAN that you collect from the traveler should be a valid PAN.

[00:28:48]That means just by taking the PAN card copy, you cannot find out whether the PAN is valid or not. You would have collected the PAN the PAN card copy and you would have taken the money after a week or 2 weeks whenever you have to make a payment to your overseas supplier, you submit this PAN and you find out that this PAN is not active. Now, how do you circumvent this? What do you mean by PAN active in the first place? If your PAN is not linked to Aadhaar, the bank cannot process your remittance as a PAN becomes inoperative. The PAN and Aadhaar linking is mandatory to be done before remitting your remitting any money under LRS. Now, it is not only for LRS, your PAN in general is in a is inoperative is is inactive if it is not linked to Aadhaar. So, for those a traveler travelers who come to you, please advise them to link their PAN to their Aadhaar. It is mandatory.

[00:29:43]>> [clears throat] >> Now, very simply, what what how can FlyRemit help? FlyRemit can definitely help by if you input the PAN on the FlyRemit platform, it'll instantly tell you whether the PAN is active or not.

[00:29:54]So, before taking money so before proceeding with the customer's request and making the bookings and then getting stuck at the time of remittances, you can instantly figure out whether the PAN is active or not if you use the FlyRemit platform. So, what is the FlyRemit platform? You can simply you have to come and register on flyremit.com which is agent.flyremit.com or just come on flyremit.com and select agent.

[00:30:15]You'll be taken through the registration process. There are certain documents that we require. You upload those documents and you're ready to go. When you have a transaction, upload the invoice, input the value that you want to remit, give the beneficiary.

[00:30:29]You will see the live effects rate. You can pay it completely online, block the rate then and there itself and pay completely online. It'll get processed and within the next working day itself, you'll get the swift confirmation on the platform itself. We work the platform works 24/7.

[00:30:43]Rates are available only only during the day and and during when bank working days.

[00:30:49]They our team works by 6 days a week from 10:00 a.m. to 7:00 p.m.

[00:30:53]Everybody gets an account manager through by whom he can who can handhold them and take them through. The FlyRemit has completely digitized the entire thing and thank you so much that there are more than 10,000 travel agents who are actively working with us today and in just past 2 years we've done more than 250 million dollars worth of remittances.

[00:31:14]Want to get started with us?

[00:31:16]These are the the team members that we have that you can contact us at and get started. I will now move to the Q&A session.

[00:31:25]I'll stop the share and move to the Q&A session.

[00:31:30]Uh please let me know if you have any questions. I'll be happy to take them right away.

[00:31:37]I'll just go through Yes, this is a very important question.

[00:31:42]It is being asked and I I need to name I don't have the name right away, but somebody has asked a very important question that TCS has to be calculated whether 2% or the 0% and 20% whichever is the slab. How do you calculate it? Is it pre-GST or is it post-GST?

[00:32:02]The rules of TCS and TDS is very very simple. It is on the total value. That means if your billing is 100 rupees and let's say your GST is is 18 rupees on it, let's say, that becomes 118 rupees.

[00:32:17]On this you will have to take 2%. That will be 2.36% 2.36 rupees. Let me be very clear. 100 rupee is your invoice value, 18 rupees is your GST, it makes it 118 rupees. On 118 rupees is what you will multiply the 2% if it is over if it is a bundle package, and you get 2.36 rupees which are to be paid as TCS.

[00:32:41]So, invoice value plus GST, then multiply by the by the TCS rate equal to the TCS value that you have to collect.

[00:32:51]Okay, there's so many questions coming in.

[00:32:55]Uh yes, this video will will always be on the Flywire channel. You can always come and view it, or you can get in touch with with our our customer support with our account manager management team, and they will be happy to give you these slides as well as send you the video.

[00:33:08]Okay.

[00:33:11]All right. What's the next question?

[00:33:17]Uh I'm just taking the questions in the order that they are coming so that I don't miss out anything.

[00:33:22]Uh someone has asked me, "What if only sightseeing is booked? Will it come under no TCS or 2%?" If only sightseeing is booked, it comes under the standalone service. That means up to 10 lakh rupees per financial year per PAN, the TCS rate is zero. If the if the if they exceed above 10 lakh rupees per PAN per financial year for for LRS purposes, then you have to collect 20%. How do you find out? You have to take a declaration from the traveler.

[00:33:54]That means when you are taking a travel booking, please take a declaration from your traveler that has he remitted any values under LRS in this year. If yes, is that value less than 10 lakhs or above 10 lakhs? If it is a bundled package, you don't need to take that declaration because on the bundled package, it's a straight 2% without any threshold.

[00:34:23]All right. Okay, so many questions got updated.

[00:34:33]Okay. There is another question which I think is is is uh It means which type of companies can deduct TCS from traveler? Anybody, whether you are a sole proprietor, whether I mean the travel agent.

[00:34:48]Whether the travel agent is a sole proprietor, a travel agent is is a partnership, a travel agent agent is an LLP, a travel agent is an incorporated private limited company.

[00:34:57]>> [clears throat] >> If you are any person doing the business of tour and travel and collecting money from the traveler and remitting the money's overseas for an overseas tour program, you are liable to collect TCS. Whether you are an individual doing a freelancing business, whether you are sole proprietor, whether you are uh uh a partnership firm, anybody, any person or an individual giving the service of travel and tour and collecting money's from an individual in India for cross-border remittances for overseas tour program package is liable to collect the TCS. So, if you are a travel agent in any sense, in any sense, you are liable to collect the TCS and discharge it to the government. It is your responsibility.

[00:35:48]Uh where can I check the slab? You can check this slab on the income tax website uh and look at the income tax uh act directly. It is always available on the income tax act. All right. Another question is what about MICE bookings? A very, very good question. What about MICE bookings? MICE booking would mean that it is not paid by a PAN holder.

[00:36:08]In a MICE booking, PAN is not reported.

[00:36:11]In a MICE booking, I am colloquially referring it to corporate booking of bookings paid by the corporate. When bookings are paid by the corporate, there is no TCS on that, but there will be TDS.

[00:36:25]The other way around also is if a TDS is deducted on any transaction, TDS tax deducted at source, TCS is tax collected at source, so there's a difference.

[00:36:36]>> [clears throat] >> TDS would mean that if you have if you're you as a travel agent you as a travel agent have an invoice of 100 rupees on some XYZ corporate the XYZ corporate will deduct either 2% or 10% depending on whatever slabs they are following as TDS.

[00:36:55]Now this TDS is actually deducted on 100 rupees. That means you as a travel agent, let's say that the rate of deduction is 10%, that is 10 rupees, you will get paid on a 100 rupee invoice that you gave to the corporate, you will get 90 rupees in cash or bank transfer.

[00:37:14]You will get 10 rupee worth of TDS certificate. This TDS certificate, the travel agent who will have to claim it from the income tax department in his income tax return.

[00:37:26]So here is the difference. TCS is collected from the traveler and claimed back by the traveler.

[00:37:33]TDS is deducted by the corporate who's paying the travel agent and the travel agent has to claim back the TDS values in his income tax return.

[00:37:43]So there's a big difference in both of these. If you want me to repeat this after some time, I'll be happy to repeat this. You post the question again, but remember TCS and TDS are two different things. If on any transaction there is TDS which is deducted, no TCS is applied.

[00:38:00]If there is TCS, no TDS is applied. That is the rule of income tax.

[00:38:06]All right. Does vendor charge travel agent TCS in B2B model if travel agent already collecting TCS from client? Now this is a very big question, but I believe the market practice is that the traveler pays to the travel agent one the TCS and the travel agent one remits the TCS to the overseas to the to the government and gives the challan back to the 133 form 133 back to the pan holder. Now, if the travel agent one is not remitting the money overseas he will make the payment to travel agent two from whom the travel agent one is buying the package. So, let's assume the travel agent the travel agent two is a consolidator. The travel agent two does not need to collect TCS from travel agent one, but he needs to get some proof that TCS has been discharged on the value of remittance which has which will which will go out. So, essentially travel agent two should take a declaration or proof of TCS payment from travel agent one to safeguard himself because when the travel agent two goes to the bank, the bank is going to ask the travel agent two that did you pay TCS? The travel agent two will say the TCS payment liability is travel agent two's and he will take care of that. On what basis will he take care of that? On the basis of the declaration that he's taken from travel agent one or the proof of payment of TCS from travel agent one.

[00:39:35]This is how you work in the B2B environment.

[00:39:43]Uh if there is only sightseeing, will it come under 2% or 0% TCS? If it is only sightseeing and the entire remittance in the financial year is less than 10 lakhs is 0%. If the remittance cumulative remittance of the pan holder is more than 10 lakh rupees in a year, it will come under 20%. If it is a standalone booking.

[00:40:05]So, [clears throat] remember standalone will get split into two parts, less than 10 lakhs, more than 10 lakhs. Package booking is package rate 2%.

[00:40:13]Remember it that way. Or you You very simple slide which I have created. You can you could have taken screenshots. Uh this presentation will also be available and my team will send it to all the people who registered on this webinar.

[00:40:23]You will get this presentation as well.

[00:40:26]What happens in case of corporate booking? Can we give company PAN? Yes, on in a corporate booking company PAN is the only PAN which is required.

[00:40:35]In this sense, the the corporate will pay the travel agent by deducting TDS.

[00:40:40]In this case, there is zero TCS applicable because TDS has been deducted by the corporate and the travel agent will now have to claim back the the TDS in his own income tax return.

[00:40:56]How to differentiate between standalone travel remittances and bundled overseas tour packages? I have I've taken a lot of time to speak about that already.

[00:41:03]Uh essentially, one service plus one is overseas bundled package.

[00:41:10]Any single service is a standalone booking. Very simple definition.

[00:41:15]In package, we consider flight ticket also. We have to make TCS on that as well. Now, generally domestic flights uh which are uh which are in the overseas jurisdiction. Let's say you are sending a a traveler to Japan and he's landing up in Osaka and from Osaka he's probably going to Tokyo. The flight from Osaka to Tokyo is a domestic flight. It is part of the service of the travel agent. This will be considered as a service. So, that flight plus the hotel will be considered as an overseas tour program package. Now, but if you're doing India to let's say Japan flight and this is usually paid to the Indian companies uh uh for the overseas for the for the flight tickets. So, this is not being remitted by the travel agent. It is not intended to be remitted. So, for flight tickets which are paid to the Indian consolidators or to the airlines within India or via the BSP mechanism or via the item item mechanism or via consolidators, flight tickets do not attract TCS because they are paid out in Indian rupees and they are paid out to Indian parties and there is no direct remittance involved over here.

[00:42:27]But domestic flights overseas, that is usually considered as part of an overseas tour program package and that will form part of TCS. So, if you're doing if you're doing India to let's say Japan flight and that flight component is paid to a domestic consolidator or is paid via the item mechanism, there is no TCS on that part, but if it is in the flight which is there on the overseas destination which is being paid to the DMC for which the remittance has been made, that plus another service will become an overseas tour program package which is a combined or bundled package.

[00:43:03]Okay, people are asking, can we bill international flight ticket, visa in a separate invoice, international land package as a separate invoice? Yes, you can do it if you are able to explain to the income tax authorities that they are standalone and they are not bundled up.

[00:43:19]So, it depends on your explanation and depends on how you invoice it.

[00:43:27]Yes, income tax says you can't charge tax on tax, but the regulation is very simple, I should have only net values.

[00:43:33]Here, as you can see, TCS is not a tax, it's an advance payment. So, if you're taking TCS on the GST component as well, remember it is a calculation mechanism, not a tax. Yes, you are absolutely right, you cannot tax on tax, it is a paradigm income tax doesn't allow. TCS is not a tax, it's an advance payment of tax and the computation mechanism is invoice value plus GST multiplied by the TCS rate and that is a quantum that you've got to discharge. Remember, TCS is not a tax, hence tax on tax logic does not apply on this.

[00:44:16]Okay, good question from Nikhil Patel. If DMC cost is $100 and my markup is $20, then TCS will be on $100 or $120?

[00:44:28]You will collect TCS on the value that you bill to the customer. So, if the DMC cost is $100, your markup is 20, the billing to the customer, the billing to the pan holder, the billing to the traveler will be $120. And let's assume it's a bundled tour package, so 120 into 2% is $2.4 is what you have to pay as TCS.

[00:44:48]So, it is not on the remittance value, it is on the value that you charge the customer.

[00:45:00]Okay, if we have booking passenger All right.

[00:45:05]Very good question. If the traveler is a foreign resident or a foreign citizen So, you have collected money on behalf of a traveler who is not Indian resident or who is a foreigner There is no TCS on this transaction.

[00:45:26]Reason is that the traveler the pan the the person who has the passenger over here is not resident in India. That means he is not liable to income tax in India. He is not a citizen of India and also not a resident of India. That means he is not liable for TCS in India.

[00:45:43]Please do take a declaration from such passengers saying that you since you are an overseas citizen and you are not resident in India, you are not liable to pay any income tax in India in his own opinion. Take that declaration and keep it. So, that when you come for remittances, if the banker is asking you certain questions, you can answer that question saying that my passenger is not liable to tax in India and hence I've not collected TCS on this transaction.

[00:46:12]Now, if it is an Indian citizen and he's not a resident in India, it gets really difficult for remittance companies as well as banks to establish that this Indian citizen who has a PAN is not liable to tax.

[00:46:28]It is very difficult to prove for us. We will charge the tax. We will charge the TCS on it. So, short story, if you have an Indian passport holder, it is very difficult for for you to take a declaration from him that he is not liable for tax in India.

[00:46:44]In cases where Indian passport holders are there, Indian PAN holders are there, TCS gets applicable.

[00:46:50]And if they are not if the PAN holder or the Indian resident is not liable for tax, he can claim it back via the income tax process. So, if it is a foreign citizen and not resident in India, take a declaration that he's foreign citizen, he's not resident in India, and he's not liable for tax in India. Only in that cases you as a travel operator can do away, you should not charge TCS on on such transactions.

[00:47:21]Okay.

[00:47:27]How do we go about if it is a group and members of the group want separate invoices? I mean, that's an invoicing question and not a TCS question.

[00:47:34]Uh is TCS applicable on only international bookings? Yes, TCS is applicable only on international hotel bookings also, but if the value of such service cumulatively or added all together in one financial year exceeds 10 lakhs. So, if the value of international hotel booking in a one financial year is less than 10 lakhs, and you're only booking international hotel, the TCS rate is zero. If the value of international hotels booked during the full year exceeds 10 lakhs, then you have to pay 20% TCS. You have to collect 20% TCS from the traveler and deposit it to to the government exchequer.

[00:48:18]Okay, if a vendor from whom a travel agent books a cruise is collecting 2% TCS from that booking, then whose PAN should be used?

[00:48:29]The customer's PAN or the travel agent's PAN?

[00:48:31]The PAN for punching the TCS will always be of the traveler, of the individual.

[00:48:40]You cannot punch in the corporate PAN of a travel agent.

[00:48:46]It will not accept it, and it is wrong.

[00:48:49]TCS is to be paid by the traveler and deposited in the name of the traveler in the traveler's PAN. No other PAN will will be allowed to file the TCS returns and to pay the TCS as well. Remember, TCS is not a liability or a cost on the travel agent. It is always a liability and a and a output. I would not say cost, and a cash flow out from the traveler.

[00:49:16]So, please don't book any TCS or collect additional TCS from your travel agent who is one one below you.

[00:49:28]If we booked hotel separately and remittance done for only for land cost, in this case TCS is required. Very simple, >> [clears throat] >> if you're doing the remittance for a stand-alone booking, no TCS is required up to 10 lakhs. Above 10 lakhs, yes, TCS is applicable per PAN.

[00:49:51]Okay. As a travel agent, if we issue air tickets from travel agent A and hotels from travel agent B uh plus sightseeing from travel agent C, will TCS be applicable on total of that ticket plus hotel plus land package? If you are remitting all of these three together, yes, TCS is applicable as a bundled tour cost. If you are remitting this separately, it will not be considered bundled tour cost. Then the 10 lakh slab will come in. Less than 10 lakhs it is zero. More than 10 lakhs it is uh 20%. Now here is comes the catch. Now if the air ticket and hotel, let's say comes up to let's say 9 lakh rupees. Okay, there is no tax. Now there is a standalone thing about uh sightseeing. The sightseeing cost another 2 lakh rupees. Total cost is now coming to 11 lakhs.

[00:50:50]Now this 1 lakh will be charged 20%.

[00:50:55]So even if you're doing standalone, all the standalones will get combined and it should be less than 10 lakhs for the full financial year, not per remittance, for the full financial year.

[00:51:05]If a standalone booking exceeds the 10 lakh threshold cumulatively from the past uh remittances as well, then the excess above 10 lakhs will be charged at 20% even on standalone bookings.

[00:51:21]It does not uh somebody's asking that if we have a US dollar account and we get US dollars, then we remit the then we remit the same from the from that same account, is TCS applicable?

[00:51:32]Uh I'll simplify the question. Uh a travel agent friend is asking that if you own a USD account in India, you get money in USD and from the same USD you're remitting the money, is TCS applicable? This is irrelevant.

[00:51:48]What is relevant is the who has paid you the money. The person I am I am 100% sure that if a person is paying you in US dollars, he's not a resident in India and he's more likely not to be citizen of India. If he's not if the the passenger or the person who paid the travel agent is not resident in India, is a foreign citizen of India, then TCS is not applicable on that transaction.

[00:52:12]It doesn't matter whether it came in dollars, it came in rupees, it came however, doesn't matter.

[00:52:18]If you have an Indian passport holder or an Indian citizen and he says he's non-resident and if you are absolutely sure that he's non-resident, then he is not liable to pay TCS. But you will face problems answering people like Flywire answering people like the bank who will say, "How can I be sure that this Indian citizen who has a PAN number is not resident in India?" They will ask for a certificate and that certificate is not available because government of India doesn't issue a certificate for non-resident Indians that you are non-resident for this year.

[00:52:55]So it becomes difficult. So I'm telling you the practical and the theory as well. In theory, if if an Indian is non-resident, he she is he's not liable for TCS. But in practice, it is very difficult to prove to people like Flywire as well as to to the banks that this Indian citizen is a non-resident person and because he's non-resident, there is no tax liability on him and because there is no tax liability on him, there is no TCS on him. It gets very difficult. So thumb rule, foreign passport holder, don't charge TCS. Indian passport holder, charge TCS.

[00:53:37]Okay, I'm just skipping the the common questions. There's so many questions which have come in, which is very nice.

[00:53:48]Okay. Okay. Okay. Okay. There are so many questions.

[00:53:52]All right. All right. There are more than 30 questions, 30 to 40 questions which have come in.

[00:53:58]MICE bookings we have already covered.

[00:54:02]Uh 2% we've already covered.

[00:54:06]Kenya passport we've already covered.

[00:54:09]Uh Okay. Okay. Okay. Okay.

[00:54:16]If the a travel agent is asking, "If I am transferring the amount through Fly Remit, TCS will be collected by Fly Remit?" Now, you're a travel agent. You have to collect the TCS and give it to the to the government. We will only take a declaration that you will abide by TCS. We will not collect it. Yes, if a direct traveler comes to us, we will collect TCS and give it to the government. If a travel agent is coming on the Fly Remit platform, it is the travel agent's responsibility to collect it from the passenger because Fly Remit is not facing the the passenger. Fly Remit is only face facing the travel agent over here.

[00:54:45]So, if you're remitting the money through Fly Remit, Fly Remit will not collect the TCS if you're a travel agent. We will take a declaration from you on the portal itself that TCS liability will be taken care of by you as a travel agent and you have taken it away uh taken that TCS from the uh traveler as well.

[00:55:03]TCS on MICE and corporate travel is not applicable because over there TDS usually gets applied and the rules of TDS is separate.

[00:55:12]Thumb rule, if TDS is deducted, no TCS is applied.

[00:55:20]"Do you need a TAN for this? I am running a sole proprietor sole proprietorship having GST only." Yes, to collect to be able to collect TCS and discharge TCS, you need a TAN. But, a TAN is any which way uh required even if you're a sole proprietor because you will probably somebody will deduct your TDS. How will you claim it back if you don't have a TAN?

[00:55:43]Uh some you will be required to deduct TDS on behalf of somebody. If you have deducted TDS on behalf of somebody, then how will you deposit it and if you do not have TAN? So, TAN is required and it is it is available.

[00:55:57]Uh it is it it is it is it doesn't cost uh too much money. TAN is mandatory to be able to collect TCS and deposit TCS.

[00:56:05]It is it is more on the deposit side and because on the deposit side it is a required, you will need it at the time of collection also.

[00:56:19]I think I've already answered this question, Exotica Traveler. If a client is a US citizen who doesn't have an OCI card or PAN and we and we book an overseas package, how does that work? If the client is a US citizen who is not an Indian, no TCS. If he is an Indian, then you have to take it's up to you uh whether you want to take the risk that of judging him that he is not liable for tax in India. I suggest that you should take the TCS and be safe.

[00:56:55]Okay, for bundle packages, will it include everything, flight, visa, hotel, transport, and sightseeing, etc.? Yes, it's it's the entire package value.

[00:57:09]Okay, some advance says 25% remitted in March and balance in April and billing is done in April, how to go ahead? Uh whatever billing you are doing in the financial year will be taken for the for the TCS slab wise calculation. So, plan your billing adequately, I would say.

[00:57:23]So, if you're doing billing pre-April, post-April, uh plan your billing accordingly.

[00:57:33]We are a B2B travel agent. Sometimes our B2B agents do not have TAN. Then we need to collect the TCS on our invoice amount. If you are a B2B agent, that means you are working with another travel agent, you do not have to collect the TCS from the travel agent and file his file the the TCS value on the on the PAN of the travel agent. No, don't do any of this.

[00:58:02]If you are a B2B agent, thumb rule.

[00:58:06]Collect a declaration from your B2B agent that he is responsible for discharging the TCS, for collecting the TCS from the PAN holder, and discharging the TCS from the PAN holder. And if required, we will ask the you will ask the payment challan of TCS. These three declarations is what you want to take, three line items, that that your B2B agent has collected the TCS from the PAN holder, you will the agent will be responsible for discharging that to the government. And three, if required, we will ask you for the proof of payment of TCS. And you just go ahead.

[00:58:41]You do not have to collect TCS from your travel agent. You do not have to file the TCS in that in the PAN or or your own TAN for TCS if you're collecting the money from a travel agent. Now, just a declaration it should be fine.

[00:59:02]Form 133 needs to be given by travel agent to the client. Yes, because you are the one who filing the TCS, and in exchange of that you get the form 133.

[00:59:15]MICE booking TDS rate for 26 27, it depends on the there is no such TDS rate. It depends on the structure and the contracting between the travel agent and the corporate. and the basis on that there'll be TDS liability. It can either be 2% or 10%.

[00:59:34]Do we require any registration for collecting TCS from client and advise a procedure for collecting and paying to the government? Okay, you do not require any registration, but yes, as in the previous question, you require a TAN number.

[00:59:45]TAN, not PAN. It's T for tango. TAN number. TAN number is what is required.

[00:59:53]It doesn't cost much money. What is the process? You collect the money from your customer and within the 7th of the next month, you have to deposit it with the government. How to deposit it? Many banks allow you to directly deposit through online banking.

[01:00:07]You will then need to file a TDS and TCS return every quarter, which your chartered accountant will be able to help you in filing that return.

[01:00:18]Will TCS apply irrespective of payment is made in INR or USD and what if the payment is made in cash? Okay, why not?

[01:00:25]Nice question. Okay, TCS will apply irrespective of whether you collect the money in dollars or INR. TCS will apply whether you collect the money through banking channels or non-banking channels. Remember, and I am just taking a small break over here.

[01:00:41]Income tax, TCS comes under income tax.

[01:00:45]All right? Income tax does not care whether the income is legal or illegal.

[01:00:55]Please remember this, okay? This was a This was This is slightly shocking for a lot of people. I remember when I went to for my income tax classes during my chartered accountancy days.

[01:01:05]Uh It was It was It was a joke. That means my professor used to tell me that this guy who's who's probably at the back bench, okay? If he tomorrow decides, okay, okay, I I might I am here to make money and that's why I want to become a chartered accountant. Now, he suddenly decides that, okay, no, I can do something else which is illegal like smuggling or something like that and make more money.

[01:01:28]Doesn't mean that his income tax free.

[01:01:33]So, whether income is legal or illegal, income tax has to be paid on it.

[01:01:39]That's a separate question altogether.

[01:01:41]The legal departments, the enforcement departments, the the law of the land will take care of of the income, but income tax department wants a share of its income tax. Whether you make money legally or you make money illegally. So, whether you take money in cash or you take money in through via bank transfer, TCS will be applicable, but let me tell you if you take money in cash above 50,000 rupees per pan, that is not permitted by the Reserve Bank of India rules.

[01:02:08]Also, players like us will do a due diligence on you and figure out if you have collected money in cash. If you have collected money in cash from the traveler, then the remittance cannot happen. We will stop the remittance and most probably it will get reported as well.

[01:02:22]So, whether you collect money in INR, you collect money in dollars, or you collect money in cash, TCS will be applicable if it is applicable.

[01:02:36]All right, Adam Holidays. Thank you. I now know that you are also doing Osaka tickets. Thank you so much for telling us.

[01:02:43]And may God give you a lot of more business on that route.

[01:02:50]You should consider a one-day master class on the subject. Uh for sure, happy to. It will be more detailed. I will just wrap it up very quickly from here onwards because it is getting too late.

[01:03:08]All right. I think most of the questions are repeats. Still we do that.

[01:03:16]Okay, sometimes corporates don't have the final name of the travelers in advance. How do you make remittance in that case? In the corporate remittances, we do not need the entire list of passengers who are going.

[01:03:27]Even if you have some names and some passport details, that should suffice because ultimately the the funds are being paid out of the corporate. That is more important for us to review and where the money is going. That's another important thing for us to review. So, if you do not have the finalized list, even then you can go ahead and make a remittance as long as for whatever is there is the ad hoc list, those names, those passports, and and those details are available.

[01:04:02]Yes, someone is asking me uh very nice name, Common Man Talk.

[01:04:08]Common Man Talk is asking if I if suppose I am collecting TCS at 2% for bundled package, which means I need to collect GST also in the same way. Yes, you have to.

[01:04:21]Is TCS chargeable to foreign nationals having OCI? The answer is no.

[01:04:28]In case of OCI holders, TCS will be applicable. The answer is no, but take a declaration that they are not taxable in India.

[01:04:36]And also take a copy of their OCIs to keep in records.

[01:04:42]If you have booked a package with an Indian agent for a US citizen, does the TCS come into picture? For a US citizen not a resident in India is not taxable in India. That's why no TCS on a US citizen. But, take a declaration that he is not resident in India and he's a foreign citizen.

[01:04:59]Is DMC liable to collect TCS if the DMC has an office in India and they're collecting payments in India? Then yes, that Indian agent or the Indian DMC office will be liable to collect TCS from the travel agents From the traveler, sorry, from the traveler.

[01:05:14]Uh Uh but they will all be liable in in the in the chain of TCS, and that's why DMCs should use Flyremit. You do not have to create an Indian entity, but you can collect in Indian rupees and give your user an experience of of having an office in India uh and all the benefits of of having an office in India without having an office in India and without being under the ambit of TCS. So, I urge all of you all the DMCs on this call that you can work with Flyremit to collect your invoices from your travel agents in India so that you're outside GST, you're outside TCS, you're outside all of these remittance issues. Flyremit takes care of all of these things and dumps the money on you in timely manner and gives you complete MIS as to how the money's have been collected from the travel agents. So, DMCs establishing offices in India is a bad choice because you'll be liable for GST, you'll be liable for income tax, as well as the compliances of TCS, and you will be remitting the money under your declarations.

[01:06:07]Eliminate all of these four and just register it so that on the Flyremit DMC platform, there's the dmc.flyremit.com, and through that you can collect monies from Indian travel agents. You can collect monies from from from for mice purposes as well, as well as for uh for travel packages for individuals, FITs, and uh mice both.

[01:06:32]All right. Uh I think most of the questions are same.

[01:06:41]Okay. Uh for travel agent, what if hotel is offering full board package including transfers? Is TCS applicable? No, because you are making a remittance to only a hotel. Part of the hotel service is is doing all of those things. Let's take for example the Maldives. In the Maldives, the hotel will give you food, the hotel will give will give you sightseeing because it's a single-stop uh destination.

[01:07:03]That will be stand-alone package. It will not be a bundled package.

[01:07:08]If you are doing two separate separate services which are segregatable, then it will be and combining both, that will be called as overseas bundled tour program package.

[01:07:19]Okay, there's another question. I saw some travel agents just give declaration to DMC, but doesn't collect and pay TCS to government and nothing happens to them. So, what want to understand legal angle to this.

[01:07:49]Okay.

[01:07:51]I'll go from the bottom bottom's up now because I think a lot of people are putting questions again and again. I'll go bottom's up.

[01:07:58]Does an Indian citizen with a UAE residence permit need to pay TCS?

[01:08:02]Indian citizen, UAE resident He means he's not resident in India. He is not liable to pay TCS, but take a declaration to be safe.

[01:08:13]My transactions are possible through FlyRemit. Yes, absolutely. My transactions are possible through FlyRemit. If I have a client who is a New Zealand citizen, but of Indian origin and is paying for his Indian account, is TCS applicable? Irrespective of whether he pays from an Indian account, TCS will not be applicable, but take a declaration.

[01:08:35]Yes, this video will always be available online on our YouTube channel and our account managers will also send it.

[01:08:40]Please do join our broadcast channel on WhatsApp.

[01:08:44]Can you Can somebody put a link of our WhatsApp channel on uh on this chat? Please join the WhatsApp channel that we have. All of these updates, all of these changes, any holiday schedules, anything affecting remittances, any important announcements which are coming out with the respect to remittances, you don't get a shock.

[01:09:03]All right, if I book a hotel in foreign or any type of ticket in foreign from a portal like MMT, you have to collect TCS from traveler. Yes, you have to collect TCS from the traveler because MMT then becomes a B2B agent and you are making a payment you as a travel agent are making a payment to MMT.

[01:09:21]MMT will charge its own TCS because they're a B2C platform. They don't consider you as a B2B agent. But if you're using the B2B platform, they should be able to consider that and you need to collect TCS on the traveler. Give a declaration to MMT saying that I have collected the TCS and I will deposit it myself.

[01:09:42]If land crew land cruise and visa will TCS need to be collected on visa also?

[01:09:47]Okay, if there's a visa component in the in the overseas tour program package, usually visa is also excluded from the overseas tour program package cost because visa is not part of the overseas tour program. It's a facilitation service. It's it's a service through which you will be you will get to the overseas destination. So usually visa is not counted part visa cost is not counted part of the overseas tour program package.

[01:10:15]Uh any format? Uh I'm sure my team will be able to give you a format as well. We can we can supply a format as well. That's not a problem.

[01:10:23]I think most of the questions are are quite repetitive.

[01:10:31]Okay, Rajiv Sabharwal ji is asking a very nice question. As per circular 10 of 30th June 2023, question eight and nine, independent services does not qualify for TCS. Two or more services will entail TCS, Rajiv from Gaurav Travels. Absolutely right, Rajiv sir. If there are two independent services as we calling it, standalone services, up to 10 lakh rupees combined in one financial year, TCS rate is zero, but if individual travel services combined in one financial year per pan exceeds 10 lakhs, there is a 20% TCS on that.

[01:11:07]You will have to collect TCS irrespective of the fact whether you have TAN or not.

[01:11:12]Yes. When you after you collect the money, how will you deposit it? When you need to deposit, you need to have a TAN number. So, you need a TAN if you're if you're a travel operator in the overseas business in in the in the overseas travel business, you will need a TAN number.

[01:11:36]All right, I think I've come to the end of the questions because uh most of the questions uh are the same.

[01:11:55]Okay, Japan payment received in company name since it is If a company has paid for a Japan trip, there is no TCS applicable. The company will deduct TDS and pay the travel agent. When TDS gets deducted, TCS is not applicable.

[01:12:12]That is rule number one. Rule number two is corporate payments does not come under LRS.

[01:12:17]TCS is applicable only on LRS transactions. So, from this angle also, there is no TCS on corporate and MICE payments.

[01:12:28]All right, I think I've come to the end of uh the question and answer session. I will just take the uh the last two questions because they have taken the time to uh uh to put this uh detailed question.

[01:12:40]When to collect TDS? When when to collect TCS before or after the trip?

[01:12:44]You collect the TCS at the first instance when you collect the payment from the customer.

[01:12:50]The thing is you can delay your liability. You can delay your earnings, but you cannot delay the due that is to the government because there are penalties on that. So, TCS has to be collected at the first instance itself when you're collecting the payment from your traveler. Be safe, collect the TCS amounts first, then then collect your invoice later because you can delay your collections possibly. That's also not great, but you cannot delay the deposit that you have to do to the government.

[01:13:19]So, please be careful of taking TCS pre-hand and depositing it. It is not after the travel.

[01:13:27]For example, Mira Dubai DMC may have Mira Dubai may DMC have who visa They do visa from here. Then TCS will be applicable on the visa payment. They're doing a standalone visa fee.

[01:13:41]If this is being remitted to them as a standalone service, then the 10 lakh rule will be applicable. If you're doing a bundled service, then visa is usually not under the TCS.

[01:13:51]There is a gray area on this to be very very frank.

[01:13:54]In my opinion, if it is standalone visa payment, TCS will come into picture, but it's usually within the below the 10 lakh threshold, so there's you don't have to worry about it. But if it is a bundled package, it is almost clear that in a bundled package a visa will not be computed as part of the bundled package program, and hence the 2% that you have to pay is excluding the visa fee.

[01:14:16]How do we check the 10 lakh limit of the PAN card holder? You cannot check it.

[01:14:20]It's a declaration that you have to take. So, when a person comes to you, you have to ask him these questions whether he's within the 10 lakh limit or after the 10 lakh limit. Outside the 10 lakh limit, then definitely he has to you have to collect 20%. If within 10 lakhs, you have to collect 0%. How do you come up to this conclusion? Take a declaration from the PAN holder.

[01:14:41]What if the visa gets rejected after getting the TCS declaration?

[01:14:46]At best, what's going to happen? At best, what's going to happen? You've collected the TCS, you pay the TCS to the government.

[01:14:53]The pan holder can claim back the TCS.

[01:14:55]That's it.

[01:15:04]Uh Shahrukh, the link is not being given over here.

[01:15:07]Uh I need the link for the WhatsApp group that has to be put over here. I am ending this uh webinar right now.

[01:15:16]How will we know the final amount if the client keeps adding some inclusions during the process? These are practical issues. You can collect TCS once, you can deposit it uh you can collect TCS multiple times for the same transaction and deposit it multiple times as well.

[01:15:29]Now, deposit you have a deadline of 7th of the next month. So, this month 30th has got over.

[01:15:35]So, if he's adding a something uh beyond that, it goes to the next month. So, keep taking for any additional service, keep taking TCS and keep putting it over there.

[01:15:55]Yes, uh the Shruti Prasad is asking, "Sir, regarding TCS and overseas tour packages, is a 10 lakh threshold checked customer-wise, PAN-wise, or based on total sales of the travel agency?" Now, it is not dependent on the travel agency. All TCS is a liability on the traveler, on the PAN holder. So, all the liabilities is per PAN. So, it is per PAN, not it is not related to the travel agency turnover, nothing to do with the travel agency.

[01:16:23]XYZ comes to your doorstep, tells I want to do an overseas uh tour. You take a declaration from him, "Did you do any remittance in this financial year?"

[01:16:33]If no, no problem. He will be under the 10 lakhs limit, 0% TCS. If he's traveled abroad, ask him whether he's done more than 10 lakhs or less than 10 lakhs. If he's done less than 10 lakhs, 0% TCS, go ahead. If he's done more than 10 lakhs, take 20% deposit to the government, give the 133 form back to the traveler, and you're done.

[01:16:58]Tickets 1 lakh, visa 10K, land 70K. So, we need to collect only rupees 1,400 as TCS. Let me do this math right away.

[01:17:07]170 into 2%.

[01:17:10]Yes, looks like you will have to pay 70 into 2%. That's 1,400 rupees as TCS.

[01:17:15]Perfect.

[01:17:17]Ranju Tours on board is has got the right answer. So, finally packages below 10 lakhs packages packages more than one service, straight 2% TCS.

[01:17:34]Stand-alone service less than 10 lakhs, 0%. Remember that.

[01:17:40]So, Abhijit Kaushik I'm answering your question directly.

[01:17:45]Packages 2% TCS straight, no exemption.

[01:17:51]Stand-alone service, only hotel, only flight, only land, only sightseeing, okay, only attractions. Less than 10 lakh rupees in one financial year combined all of these things 0% TCS.

[01:18:02]More than 10 lakhs, 20% TCS.

[01:18:06]Thank you, Abhijit. Uh I hope this is this is this is all and apologies for the extension of time.

[01:18:13]Apologies for the disconnection.

[01:18:17]Uh please get in touch with our account managers. Please join our WhatsApp channel for for updates of all of these things. Please also subscribe to our YouTube channel as well as our LinkedIn and Facebook pages uh so that you get all of these updates right on the as soon as it is given out. Thank you so much for your time on this Saturday morning.

[01:18:36]We are all We are always here to help you guys out. I've got to end this.

[01:18:41]There are hundreds of questions coming again and again.

[01:18:44]Please share the WhatsApp channel link.

[01:18:46]I think I'll do it myself.

[01:18:49]Give me 1 second.

[01:18:59]All right.

[01:19:02]Has somebody put it?

[01:19:06]Not yet.

[01:19:18]Thank you so much for the update. Thank you so much for the kind comments. It is our pleasure. Fly Remit is in this business to make the the lives of travel agents easier. We have created a huge amount of savings in terms of numbers, in terms of process, in terms of transparency for travel agents like yourselves. Please get in touch with our account managers on the WhatsApp groups or just come on flyremit.com and get in touch with our account manager and get started on this.

[01:19:48]I will just share these slides again so that you can note down the numbers of my team members.

[01:19:55]So, Shahrukh is available all the time.

[01:19:57]Adnan is available all the time. Both of these gentlemen have been with us for a very very long time and most of the industry players You can note down their numbers over here. Your account manager can be reached at the last number, which is the general support number. Please take a screenshot of this and keep it with yourselves and get in touch with our with our superstar sales teams. We are always here to help you. We've simplified the remittance processes for a lot of DMC's. We simplified the remittance process for a lot of travel agents. We have We have APIs that we can use for websites that to to collect in domestic and remit it abroad. While FlyRemit is a one-stop cross-border payment solution, whether you have just started your travel agency or whether you're a hundred-plus million-dollar processor as well. We have the solution, we have the technology and the experience and the compliance information as well as a regulatory setup to get these things executed for you.

[01:20:51]Thank you so much for your time. I hope it was informative.

[01:20:56]And take care.

[01:20:59]Happy remitting and great business to all of you guys.

[01:21:02]Thank you so much. Bye-bye.