TCS applicability ?

If you are paying from India to Lestacworld’s Indian bank account for the international service then TCS is applied on the booking –

TCS rule  #

• As per Indian Govt , 5% TCS will be applicable on spends towards International Holiday packages for cumulative spends (within or outside Lestacworld.com) up to Rs 7 Lakhs in a financial year and @20% for incremental spends beyond Rs 7 Lakhs in the same financial year.

How can you save TCS if booking the service with Lestacworld.com offline ? #

It is imperative to clarify that when making a payment for services on the Lestacworld.com website through online means, specifically not via the offline (rise.lestacworld.com CRM platform), you are exempt from the obligation to remit TCS (Tax Collected at Source), even if you pay via Indian credit card.

Reason – Lestacworld company has its legal existence in 3 different countries –  India, Indonesia and USA. All these companies are 3 different entities that is operating for 1 single domain name – www.lestacworld.com. On our website, when you make payment we receive that payment in our USA bank account which does not come under TCS regime of Indian Government.

Now, let us come to our main Question “How can you save the TCS” if booking offline international tour package in India – 

• If you are an Indian with Valid Indian Pan card,  dealing with our Indian team, booking an international tour package you can request them a stripe payment gateway link of USA bank account. This ensures that you are not paying to our Indian bank account which keeps you out of 20% TCS applicability.There is an additional 4% charge on this method, however.Bank transfer to our USA bank account is free.
• If in case you are sure that your yearly international remittances are not more than INR 7,00,000, you will be charged 5% TCS. In this scenario, making payment to Indian entity will be better option for you.

TCS is neither a cost nor additional tax, it can be fully adjusted against income tax liability and excess, if any, can be claimed as refund.

How to claim your TCS? #

Verify your TCS credit #

TCS credit would automatically reflect in your Form 26AS on quarterly basis.

Claiming your credit #

TCS can be fully adjusted against the income tax payable on any other income such as interest, rent, capital gains, etc.

Claim refund #

In case there is no income tax payable, you can claim the refund of TCS amount at the time of filing your IT return.