Banks responsible for deducting TCS for hotel bookings abroad: MakeMyTrip

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Tajinder Singh, vice-taxation, MakeMyTrip Group, said that if a travel package is booked through an e-commerce portal, the company will ask its customers to indicate whether the amount sent abroad during the financial year exceeds the limit of Rs 7 lakh. It is not more than

New Delhi. MakeMyTrip, an online travel service portal, is of the view that if a person books hotels abroad through tour operators’ portals, it should be the bank’s responsibility to deduct TCS (tax collected at source). Tajinder Singh, vice-taxation, MakeMyTrip Group, said that if a travel package is booked through an e-commerce portal, the company will ask its customers to indicate whether the amount sent abroad during the financial year exceeds the limit of Rs 7 lakh. It is not more than The government has said that from October 1 this year, five per cent TCS will be levied on travel packages up to Rs 7 lakh in a financial year.

If this amount exceeds this limit, the rate of TCS will be 20 percent. Currently, the TCS rate on such packages is 5 per cent, irrespective of the amount spent. Singh said that there are two aspects of TCS collection on foreign travel expenses – one where the tour package is booked using the e-commerce portal and the other when the customer uses the portal to make a single hotel booking. He said that in case of travel packages booked from e-commerce websites, the company will seek details of the total amount remitted from customers so far in a financial year.

In case of single hotel bookings, it will be the responsibility of the Authorized Dealer banks to obtain a declaration to this effect from the customers. Singh said, “We are talking to banks. Banks will have to come up with their own facility and infrastructure for this. In this case, they will be able to collect information on the basis of Know Your Customer (KYC) details of the consumers. We are asking the banks to follow up on this at their end.

Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.



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