TCS DECLARATION U/S 206C(1G) OF INCOME TAX ACT, 1961

That we , have purchased (“Travel Products”) from for our employees for financial year  .  That we declare the following:

(A)   For the products being sold by the travel agent on a standalone basis, the Corporate shall declare the following:

(i)      That the Travel Products are intended to be used by the employees of the Corporate on a standalone basis.

(ii)    The foreign remittance made by the Corporate towards the travel of its employees for the financial year  (including value of remittance intended to be made for these Travel Products) is not covered within the provisions of section 206C(1G)(a) of the Income tax Act, 1961 and accordingly, the remittance for these Travel Products will not be subject to tax collection as per the said section.

(iii)  No TCS will be collected by the {enter name of the travel agent} for such bookings made by the Corporate for its employees on a standalone basis.

(B)   For the products being sold by the travel agent as part of Overseas Tour Programme Package, the Corporate shall declare the following:

(i)      That Travel Products is purchased for its employees as part of Overseas Tour Programme Package as defined in Explanation to section 206C(1G) and that the Corporate has collected tax as under in relation to these Travel Products in accordance with section 206C(1G)(b) of the Income-tax Act, 1961:

• At the rate of 5% where the foreign remittance for the Overseas Tour Programme Package does not exceed Rs 7 lakhs per employee per financial year wise;
• At the rate of 20% where the foreign remittance for the Overseas Tour Programme Package exceeds Rs 7 lakhs per employee per financial year wise.

(ii)    The Corporate hereby also undertakes to remit the collected tax amount in relation to Travel Products mentioned in (i) above with the {enter name of the travel agent} for depositing with the government within the prescribed timelines.

(iii)  That the details of the PAN of the employees will be shared in an annexure basis the travel products sold by the travel agent to the Corporate.

For, Name of the Corporate

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