Question ID :
40414
Tour Operator
A Tour Operator in India books for foreign tour package in India. he takes amount by cheque from client & deposit in his current account. In foreign he withdraws amount from ATM by his international ATM & incurred all expenses by cash in foreign currency. whether all this expenditure is allowable as per income tax act. TDS will be applicable or not.
Please guide me for Income Tax compliance of outbound tour operator.
Also please guide me what other compliance is to be done for outbound tour operator
Posted by
NADIR D SHAIKH
on
Sep 30, 2019
Filed Under
DIRECT TAXES
Hi Nadir, In case the tour operator is resident in India, it could claim all the expenditures which are incurred for the purpose of its business provided, it possess all the documentary evidences for incurring such expenditures. Accordingly, such expenditures would be allowed if those are genuine and backed by necessary proofs. Applicability of TDS would depend on the nature of expenditure and whether the payment is made to a resident or non-resident (in India). Further, TDS would be applicable only if such payment is chargeable to tax in India in the hands of the non-resident.
Posted by
ASHWIN RAO VARANASHI on
Sep 30, 2019