Remittances on account of Consolidated Tour Arrangements
for Foreign Tourists Visiting Neighbouring Countries

8B.8

(i)

Travel agents are not permitted to incur any expenditure in India on behalf of foreign

tourists arriving in India through their agency unless they have received advance remittance or have made arrangements to obtain reimbursement through an authorised dealer in an approved manner. In respect of consolidated tours arranged by travel agents for foreign tourists visiting India and neighbouring countries like Nepal, Bangladesh, Sri Lanka, etc. part of the foreign exchange received in India against such consolidated tour arrangements will have to be remitted from India to those countries for services rendered by travel agents and hoteliers in the neighbouring countries. Travel agents may apply to authorised dealers for such remittances on form A2 together with a statement in form CTA duly supported by documents mentioned therein. Authorised dealers should verify the following:

(a)

Supporting debit notes/bills/invoices (in original) from the hotel/travel agent in the foreign country and the bank certificates relate to the same tourist group or family to which the statement relates.

(b)

The neighbouring countries' share of tourism earnings appears prima facie reasonable on the basis of the duration of stay in the respective countries.

(c)

Amount repatriated is supported by bank certificates (in original) confirming the receipt of foreign exchange in an approved manner (If the currency of remittance was rupees, the rupees should not have been derived from the non-convertible source).

(d)

If the full amount of the tour price has not been repatriated,

(1)

reasons therefor have been furnished and the undertaking on the form for repatriation of the balance has been completed;

(2)

at least 90 per cent of the tour price has been repatriated;

and

(3)

amount to be remitted to the neighbouring country (inclusive of remittances, if any, already made against the tour) does not exceed the amount actually repatriated to India.