The Central Board of Direct Taxes (CBDT) has notified that the provisions of section 206C (1G) of the Income Tax Act, 1961 provides for collection of tax by a seller of an overseas tour program package from a buyer, being a person purchasing such package, at the rate of 5% of the amount of the package, shall not applicable to non-residents including companies who do not have permanent establishments in India.
The notification published on Thursday stated that “the Central Government hereby notifies that the provisions of sub-section (1G) of section 206C of the Act shall not apply to a person (being a buyer) who is a non-resident in terms of section 6 of the Act and who does not have a permanent establishment in India.”
The notified amendment is applicable from the date of publication of this notification in the Official Gazette, i.e, 18th August 2022.
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