Can I claim TCS on foreign remittance?
A TCS of 5% will apply for foreign remittances and foreign tour packages accounting for more than Rs. 7 lakh. In case of education-related foreign remittances made out of loans, a TCS of 0.5% will apply for an amount exceeding Rs. 7 lakh.
How do I claim TCS on travel?
The banker or the tour operator will have to deposit the TCS amount against the PAN number of the remitter of funds and such credits will be reflecting in Form 26AS, as tax credit like advance tax, TDS, etc.
How can I claim my TCS refund?
Steps to file ‘TDS and TCS credit received’ on GST portal
- Step 1: Login toGST portal.
- Step 2: Go to ‘Services’ > ‘Returns’ > ‘Returns Dashboard’
- Step 3: Select the return period of GSTR-3B being filed and proceed to ‘TDS/TCS credit received’ tile.
Can TCS be claimed in ITR?
When a tax collector files his quarterly TCS return i.e Form 27EQ, he has to provide a TCS certificate to the purchaser of the goods. 2. Form 27D is the certificate issued for TCS returns filed.
Certificate of TCS.
|Quarter Ending||Date for generating Form 27D|
|For the quarter ending on 30th September||30th October|
How is TCS calculated on foreign remittance?
Let us assume the total foreign exchange platform availed of under LRS in one financial year is Rs 10 lakh, and the person wants to remit the amount outside the country. In this case, TCS at 5% will be applicable on the Rs 3 lakh. (Rs 10 lakh minus Rs 7 lakh) and tax collected will be Rs 15,000.
What is TCS on international transaction?
Tax Collected at Source (TCS) on LRS transactions is a regulatory requirement amended under the section 206C of Finance Act 2020.
Is TCS mandatory for foreign travel?
In case of foreign travel packages, TCS will be levied irrespective of the monetary amount and the tour seller will collect the same from you. So, whether the foreign travel package costs Rs 3 lakh or Rs 50, 000 TCS will be levied on the full amount regardless of the cost.
Is there any tax on foreign remittance in India?
Is foreign remittance is taxable in India? Money remitted outside India will be subject to a 5% tax collected at the source (TCS). The TCS rate will be 0.5 per cent of the money sent if the transfer is paid out against a loan acquired for higher education.
Is TCS applicable on tour package?
Ans: Yes, all the Sellers (including an Individual or HUF) irrespective of their Turnover in the Previous Year are liable to collect TCS. Hence all those Sellers of Overseas Tour Programme Package who are liable to collect the Tax must apply for Tax Deduction and Collection Account Number (TAN).
How do I claim TCS collected by ecommerce?
e-Commerce operators have to file GSTR-8 by 10th of the next month in which the tax was collected. This return will only be filed once the tax collected has been deposited to the respective credit of the government.
Can TCS be claimed?
Yes, the tax collected at source by the seller (paid by the buyer) is in the form of tax which can be adjusted by the buyer against its tax liability. However, if the buyer doesn’t have the taxable income, then, the TCS can be claimed as a refund.
Who gets credit of TCS?
TCS full form is Tax Collected at Source. This TCS tax is payable by the seller who collects in turn from the lessee or buyer. The goods are as specified under section 206C of the Income Tax Act, 1961.
What is TCS tax for travel agents?
Applicable at the rate of 5% on foreign remittances made through Liberalised Remittance Scheme (LRS) of RBI, Tax Collection at Source (TCS) has created apprehension among travel agents.
Where is TCS applicable?
Where transaction value exceeds Rs 50 lakh and buyer’s turnover exceeds Rs 10 crores in the earlier year, TDS would apply over TCS. For sale transactions involving motor vehicle, tendu leaves, scrap, etc., TCS continues to apply.
On which amount TCS is calculated?
TCS to be calculated on sales return (sales return order or sales credit memo) For example, sales return from customer for INR 10,000 on which 1% TCS is applicable for Nature of collection “Scrap”.