What is the tax implication for remittances to foreign tour operators under LRS?

Any amount remitted to foreign tour operators exceeding Rs 7 lakhs in a financial year will be charged 20% TCS from Oct 1, 2023.

What if a customer bought a tour worth Rs. 6,00,000 and now wants to remit forex worth of Rs. 2,00,000, what will be the percent of TCS charged?

TCS shall be applicable to all categories of LRS payments, regardless of the mode of payment. If the amount of tour package/forex purchase/forex remitted out of India exceeds Rs 7 lakhs, TCS will be charged at 20% rate. In this case, 20% TCS will be applicable on 1 lakh i.e. Rs 20,000.

Amrita Pritam, Author at Blog-Best Foreign Exchange

Amrita Pritam

Amrita Pritam is the Head of PR and Marketing at BookMyForex and a fintech communications leader with over 15 years of experience. She closely tracks cross-border payments and regulatory developments impacting Indian travellers and students.

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