Overseas tour package tax collection requires seller collection without threshold, subject to exclusion where the buyer deducts tax.

Tax collection at source applies to the sale of an overseas tour programme package, covering travel, hotel accommodation, boarding, lodging, and similar or incidental expenditure. The seller must collect tax from the buyer at 2%, without any transaction-value threshold. Collection is not required where the buyer has deducted tax at source under another provision of the Income-tax Act. The collection rate is reduced from 5% under the earlier regime to 2%.

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