Tag Archives: Ministry of Finance

Finance ministry defers implementation of TCS amendments till 1st October

In a statement, the Outbound Tour Operators Association of India (OTOAI) said that the Ministry of Finance has deferred the implementation of the TCS amendments proposed in the Union Budget 2020-21 till 1st October 2020. Making amendments in the Finance Bill 2020 before getting in passed in the Lok Sabha, the Finance Minister decided to defer the implementation of the much talked about TCS provisions to charge 5 per cent income tax on the sale of overseas tour packages and foreign exchange remittances from the buyer by the virtue of Section 206C under the Income Tax Act. OTOAI further said it will continue this dialogue and strive for the complete rollback of TCS altogether by highlighting its adverse impact on Indian outbound operators and how it would render us uncompetitive given the competitive landscape which also includes foreign players. OTOAI will keep addressing various issues concerning overseas travel with the respective ministries for the benefit of the outbound tour operators and its members.

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MOT puts forth industry requests to Finance Ministry to avoid losses: Rupinder Brar

Rupinder Brar, Additional Director General, Ministry of Tourism, Government of India, has revealed that they have put forth the industry representation and requests in front of the Finance Minister, so that they can work towards reducing the impact of the COVID-19 outbreak on businesses. “The industry stakeholders need working capital and they are looking at interventions either from the banking sector in easing out of norms, or they will be looking at support through reduction of taxes. These are the things that would leave money in the hands of the industry as of now. We would be carrying out or taking with us the representation of the industry and the thrust would be that the industry needs to survive so that job losses do not happen. I would refer to the honourable PM’s speech to the nation, where he has himself mentioned that we should make sure that we don’t stop wages of anyone. Hence, all the efforts of the Ministry of Finance would be to ensure that no such job losses happen in the tourism and hospitality sectors.”

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OTOAI meets Jt. Secretary, Finance, to revoke TCS implementation

The team of Outbound Tour Operators Association of India (OTOAI), recently met Kamlesh Varshney, Joint secretary, TPL, Ministry of Finance, to apprise him of situations arising currently on tourism industry because of TCS. In a statement by the association, it was mentioned, “We requested that TCS be not implemented and deferred in present situation. He assured that our request will be positively looked into and they would consider our request of rolling back of the law, and if rollback is not possible then deferment will be considered.” Riaz Munshi, President, OTOAI; Shravan Bhalla, Gen. Secretary; Guldeep Singh Sahni, Former President and Rajeev Sabharwal, Former Treasurer, met the Joint Secretary to voice their concerns.

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Dec 27 is last date for filing & revision of TRAN-I form

The Ministry of Finance announced December 27, 2017 as the late date for filing the TRAN-1 form under the Goods and Services Tax (GST) to avail input tax credit. The Ministry, in a release, informed that a taxpayer could file Form TRAN-1 and avail input tax credit on the basis of closing balance of the input tax credit declared in the last return under the pre GST regime. In keeping with the philosophy of voluntary compliance, revision of Form TRAN-1 has also been provided. The last date for revision of TRAN-1 is also December 27. The Ministry noted that some taxpayers have availed extraordinarily high transitional credit of CGST. Such behaviour leads to breach of trust between the taxpayer and the tax-administration, the release said. Taxpayers who have claimed transitional credit erroneously are advised to avail of the opportunity to revise Form TRAN-1 within the deadline, failing which the tax administration would be constrained to initiate audit and enforcement action against the identified units, the release mentioned.

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FAITH recommends 12% GST to Finance Ministry

The Federation of Associations in Indian Tourism and Hospitality (FAITH) has suggested an upper GST rate of 12 per cent for the tourism and hospitality industry and handed its detailed recommendations to the Ministry of Finance. The industry comprises of air travel agents, business exhibition services, hotel and hospitality services, tour operators, rent a cab and vacation ownership. The representation has been made considering strategic forex, employment, economic and GST rationale and rates for tourism, travel and hospitality sector of India. An upper limit of 12 per cent has been suggested for hotels and hospitality and vacation ownership segment. For the air travel agents the recommendation was given to continue presumptive rate on all income and keep GST at 1 per cent or less. For the tour operators, FAITH requested to introduce a presumptive rates mechanism of GST at 1.2 per cent considering difficulty of getting GST input credits from unorganised sector and the burden of compliance of registration with different states. It has been requested to exempt outbound tour operators and business exhibitions selling outbound from India from GST since provision of services are out of India. In the case of rent a car, a GST rate of 5 per cent has been suggested failing which, maximum 12 per cent has been deemed acceptable. FAITH has urged for a special GST exemption on forex income for tour operators, hotels and businesses earning forex if it can be a criteria with MoF for GST. Addressing the adventure tourism industry, FAIH has requested MoF to consider special GST exemption based on J&K and a very high component of local, unorganised labour involved.

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ASI monuments to accept 500/1000 currency notes

Based on the advice of Ministry of Finance, the Director General of ASI has issued orders for accepting demonetized 500 and 1000 currency notes till the midnight of November 11, 2016, for entry tickets to centrally protected monuments. Foreign tourists can purchase foreign exchange equivalent to Rs 5000 using these specified bank notes at airport exchange counters within 72 hours after the notification provided the proof of purchasing the specified bank notes is presented, revealed Debjit Dutta, Chairman, IATO-Eastern Region.

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