We are a Dubai based travel Agent and have bought a tour package for Maldives from an india based travel management company (TMC) . The Indian TMC is charging TCS saying that all buyers are required to pay 5% TCS. Since we are dubai based agent and is not subject to indian income tax , we cannot claim TCS refund . Why is we being asked to pay TCS @ 5%.It is unnecessarily increasing my cost.
Is it correct on the part of Indian TMC to charge TCS to those who have no way of claiming the TCS because they are required to file india income tax returns.
An early reply will be appreciated.
CAclubindia
