Tax Liability of Tour Operators

Sumit Shaw (Student CA Final ) (45 Points)

11 August 2022  

An NRI reaches out to Tour Operator "A" located in India for providing Tour Package to Bhutan. "A" then reaches out to a Local Tour Operators in Bhutan "B" to provide the service to the NRI. Services is provided by Tour Operator "B" to NRI. What should be the Tax Liability in the hands of Tour Operator "A" in the following:

1. The NRI makes the entire payment to Tour Operator "A" and then "A" makes the relevant payment to "B"

2. The NRI makes the entire payment to Tour Operator "B" and then "B" makes the relevant payment to "A" for arranging the service.

Would request the forum to provide the answer in view of Relevant Taxes including TDS, TCS or GST in the hands of "A". Thanks !!