NEWS / ASSOCIATIONS
FAITH ASKS ANTICOMPETITIVE TRAVEL TAX TCS TO BE WITHDRAWN Creates an un-level playing field for Indian travel agents & tour operators on outbound business & even international & South Asia business; Threatens to demolish Indian travel agents & tour operators by making them expensive 5-10% vs global peers on outbound travel
F
ederation of Associations in Indian Tourism & Hospitality, the policy federation of all the national associations representing the complete tourism, travel and hospitality industry of India (ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI, TAFI) & cause partner AIRDA has requested the withdrawal of the proposed TCS on outbound travel from October 1st as proposed in the Finance Bill 2020. It’s imposition which was supposed to happen on April 1st was deferred on request from the industry. However, it was not abolished and it is now set to be levied on October 1st. 26
SEPTEMBER 2020 TOURISM INDIA
The TCS is uncompetitive Implementation of this proposal will have an unprecedented negative impact on Indian travel agents & tour operators. India is now on Unlock 4 and travel corridors are now beginning to get opened up. Indian travel agents & tour operators are looking forward to some business income from revival of travel bookings. However, the TCS of 5% (10% on those without PAN) will instead of providing income to Indian travel agents & Tour Operators will shift it to Foreign based travel booking agents & operators. This is due to its anti - competitive character
against Indian travel intermediaries. This takes away their level playing field against foreign competitors. The tourism product sold from India will become almost 5% - 10% more expensive at the time of booking as against when booked through travel companies based outside of India. ( 5% for those with PAN & 10% for those without PAN). As against these foreign based travel booking agents & operators, Indian travel agents & tour operators are already more expensive by the imposition of 5% GST on tours which foreign travel agents & tour operators are
