Suman Billa, Additional Secretary, Tourism, has said that TCS is a fair point raised by outbound sector, because people who are doing business in India are getting disincentivised and who travel abroad can make the payment and obviate the entire necessity of paying the tax. “We will be taking it up with the Ministry of Finance,” he added.
Read More »FHRAI reiterates its demand for infrastructure status to hotels and convention centres in meeting with govt
FHRAI reiterated one of its key requests in the pre-budget meeting conducted by the Finance Ministry to grant infrastructure status for hotels across all categories and convention centres built at a project cost of ₹10 crore and above to give a fillip to the budget segment in the industry, along with 12 per cent GST rate across all hotels.
Read More »5% TCS on overseas packages up to RS 7 lakh, 20% thereafter wef Oct 1, 2023
Ministry of Finance has announced that there will be no change in the rate of TCS for all purposes under LRS and for overseas travel tour packages, regardless of the mode of payment, for amounts up to Rs. 7 lahks per individual per annum. For the purchase of overseas tour program package under Clause (ii) of Sub-section (1G), the TCS shall continue to apply at the rate of 5% for the first Rs 7 lakhs per individual per annum; the 20% rate will only apply for expenditure above this limit. Increased TCS rates to apply from 1st October 2023
Read More »Finance Ministry: MOT engages NCAER to conduct study on tourism industry losses & recovery policies
Anurag Singh Thakur, Minister of State, Ministry of Finance, in a written reply to Lok Sabha has said, “The closure of travel and tourism industry due to Covid-19 had a cascading effect on the livelihood of people dependent on tourism. Ministry of Tourism has engaged NCAER to conduct a study on ‘India and Coronavirus pandemic: Economic losses for household engaged in tourism and policies for recovery’.” he also stated that considering the challenges faced by tax-payers due to outbreak of covid-19, the government has taken several taxation measures to improve the liquidity in different sectors including tourism and hospitality.
Read More »MOT discusses insurance for inbound travellers
Rupinder Brar, ADG, Tourism, has said that they are in touch with insurance providers and Ministry of Finance to look at possibilities of providing insurance to travellers coming into India. “We are studying international models to see how we can incentivise travellers to come to our country and offer a certain sense of security to aid the process,” she said.
Read More »Economic advisor assures FHRAI of action against erring banks
The Principal Economic Advisor, Ministry of Finance, Sanjeev Sanyal, said during a webinar for FHRAI members, “We have, through the one-time loan restructuring option, offered to alleviate the financial burden on businesses. If for any reason this provision is not working, then the government wants to take your feedback and work on an action-plan to make it work. If this means that the banks, for some reason have displayed inhibition in co-operating with the businesses trying to avail of the government’s scheme, then we will take necessary action to rectify it.”
Read More »FHRAI urges Finance Ministry for loan restructuring, moratorium
In today’s FHRAI webinar with Sanjeev Sanyal, Principal Economic Adviser, Ministry of Finance, Government of India suggested FHRAI to put forth their general problems along with other Associations like CII and FICCI. The main problem that Association addressed pertains to restructuring of loans and extending the moratorium period. They also said that onetime restructuring which was allowed till March 31 is not taken very seriously. Sanyal said that the restructuring guidelines addressed in KV Kamanth Committee will not be considered in a normal account, banks may not be taking the guidelines seriously but RBI is. Plus, he suggested that it is important to focus on the schemes that are already existing in the framework and push it forward. Association also requested that moratorium should continue until the situation is better and banks could get a solution. They also mentioned that Amitabh Kant is making some progress in deal with Saudi Arabia for a new credit line. To which Sanyal said that funds is not a problem, economy is doing good, there is liquidity in the market, the task is how to leverage it.
Read More »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.
Read More »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.
Read More »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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