TCS on Overseas Tour PAckage

Since TCS rates under LRS is increased to 20% effective July 2023, I need following clarification. If I book a tour package in April full amount with current TCS rate of 5% for a overseas tour package with my travel agent to start the tour in July 2023, should I pay the 5 or 20% TCS to my Travel agent. Can anyone clarify on this.

Replies (2)
Quick Summary
This discussion clarifies the Tax Collected at Source (TCS) rate applicable to overseas tour packages booked before July 1, 2023. If you paid the full amount for your tour package in April 2023, you will be subject to the existing 5% TCS rate. However, any payments made on or after July 1, 2023, will attract the new 20% TCS rate.

If you have already booked a tour package in April 2023 with your travel agent and have paid the full amount, you should pay TCS at the rate of 5% as applicable at the time of payment. This is because the increased TCS rate of 20% will only be applicable on remittances made on or after July 1, 2023.

Therefore, if you have already made the payment before July 1, 2023, you will be liable to pay TCS at the rate of 5%. However, if you make any further payments towards the tour package on or after July 1, 2023, you will be liable to pay TCS at the increased rate of 20%.

Thank you very much for the clarification on the  above

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