Travel glossary
TCS on overseas tour packages
TCS (tax collected at source) is collected by the seller of an overseas tour package from the Indian buyer. From 1 April 2026 it is a flat 2% from the first rupee.
Before 1 April 2026, TCS on overseas tour packages was charged in slabs of 5% and 20%. Budget 2026 replaced these with a flat 2%. The buyer can claim TCS against their income tax.
Related terms
Related terms
GST on tour packagesIn India, tour operator services (SAC 9985) commonly attract 5% GST wi…Outbound tour operatorAn outbound tour operator sells and organises trips for travellers fro…Tour packageA tour package bundles travel services, such as accommodation, transpo…SAC 9985SAC 9985 is the GST services accounting code for support services to t…
FAQ
Common questions
What is TCS on overseas tour packages?
TCS (tax collected at source) is collected by the seller of an overseas tour package from the Indian buyer. From 1 April 2026 it is a flat 2% from the first rupee.
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