From July 1st, foreign travel is set to become more expensive as Tax Collected at Source (TCS) jumps from 5% to 20%. This means that the 20% TCS rule will apply to both foreign packages and credit cards on international transactions. Mohit Kabra, Group CFO at MakeMyTrip, explains that travellers will have to pay an additional 20% while making their travel bookings. However, this charge can be claimed back, so it is not an additional cost. Kabra has witnessed a 5% decline in business due to the upfront charge, which can have a dampening effect on travellers. The TCS levy will be applied consistently, regardless of the payment method. If customers pay via a domestic travel agent, the agent has to collect TCS, as it is an INR transaction. However, if customers book through a global travel agent, the TCS levy may be handled by the bank, resulting in a slight price difference. The only difference between booking hotels and flights directly and not through travel portals is that the TCS levy will not be upfront. In such cases, it will be collected subsequently by the bank that has issued the credit card to the customer. The only way to book smartly and save better now is to book sooner, as it is just a cash flow issue, not an additional charge, and customers can claim a credit. There are no savings to be made if you book your travel from India instead of from outside India, as TCS is applied in both cases.
“Data Security Discussions featuring Hopper, MakeMyTrip, and Indicio on ChatGPT.”
The use of generative artificial intelligence (AI) in the travel industry continues to gain momentum, as companies seek to create more personalized and efficient booking experiences. However, there are concerns around data protection and the need for regulations to govern the use of AI. In a recent LinkedIn Audio event hosted by PhocusWire, speakers from...
