[ad_1]
The Central Board of Direct Taxes (CBDT) has relaxed the availability of Tax Collected at Supply of 5% beneath part 206C(1G) of the Revenue Tax Act, 1961.
Part 206C (1G) of the Revenue Tax Act, 1961 gives for the gathering of tax by a vendor of an abroad tour program bundle from a purchaser, being an individual buying such a bundle, on the fee of 5% of the quantity of the bundle.
The CBDT mentioned representations had been acquired from home tour operators who had been dealing with difficulties in assortment of tax from non-resident people visiting India who had been reserving abroad tour bundle from such home tour operators.
“Since such individuals could not have a PAN, tax is required to be collected at greater charges. Additional, such non-residents could find it tough to furnish their ITR and declare refunds,” the finance ministry mentioned in an announcement issued on Thursday.
The relief shall be prolonged to a purchaser being a person who just isn’t a resident in India by way of clause (1) and clause (1A) of part 6 of the Act and who’s visiting India.
Consultants name this a welcome step and mentioned the transfer would encourage the journey bookings from India.
“The aim was to gather info and monitor tax compliances of excessive spending people. Nonetheless, the best way the provisions had been drafted, tour operators had been even required to gather taxes from non-residents, who’re in any other case not taxable in India, on the time of reserving their return tickets from India,” Neeraj Agarwala, Companion, Nangia Andersen LLP mentioned.
[ad_2]
Source link