NEW DELHI : The imminent fourfold increase in the Tax Collected at Source (TCS) on tour packages has triggered widespread apprehension among Indian travel agencies and industry groups. The TCS rate, set to rise from 5% to 20% in July, will significantly burden customers, despite its refundability at the end of the fiscal year.
Many domestic online tour operators express concern that this steep hike will place them at a competitive disadvantage. Their international competitors, who are exempt from charging TCS to Indian customers, could lure away their business. This potential shift could lead to Indian travellers bypassing local companies entirely and turning to international operators for their holiday bookings.
