Mumbai: Manoj Varshney ,Director ,Tulsi Travels Pvt Ltd.,shares his views on implementation of TCS
Mumbai: Mumbai Manoj Varshney, Director, Tulsi Travels Pvt Ltd has voices his concerns over the implementation of TCS u/s 206C of the Finance Bill 2020, presented by the Hon. Finance Minister on 1st February 2020.
His submission is as under:
1. International Online Travel Companies/ Booking Engines/ Foreign Tour Operators, with a base outside India are bookings air tickets, hotels, lodging, travel Services, tour packages directly for travellers without collecting any GST or taxes. They shall not even collect the TCS.
In the wake of this additional process of TCS, the business of Indian Travel Companies shall be transferred immensely to Overseas Travel Companies by the Travellers directly, thereby creating a loss of GST & Direct Tax Revenues for the Government of India.
- Adhering to additional compliances of TCS shall be contrary to the ease of doing business for Indian Travel Agencies.
Further we state that, currently PAN and Passport details of travellers going overseas are being submitted by us, and to the banks as per the norms set by RBI, while remitting the funds to global hotels, associate travel agencies, ground handlers, etc.
- Presently GST @5% is collected from the traveller and paid to the Government exchequer.
Already, even here too, we are becoming incompetent viz a vis global travel companies, as many travellers are booking directly with overseas vendors.
- With the implementation of an additional tax like TCS, more and more travellers will start adopting to the practice of direct overseas booking thereby creating revenue loss to us and the government. The Aviation industry is already in turmoil and the tourism too is getting affected due to various factors.
This will have a direct impact on jobs in over 60,000 travel agencies in India, which employs over 20 Lakh personnel directly and over millions of people indirectly. The travel and tourism industry provides jobs to around 11% of the total population today.
News Edit by K.V.Raman