Deduction of tds by traveling agent

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2012 Thanks your reply & another query

MY clients is a travel agent.He hires vehicle from individual car owner and
engaged such car with Airtel,Nalco etc.Airtel,Nalco etc are dedcuting Tds on Payment to My client.But if my client want to deduct tds on payemnt to such individual car owner they are not agreing ,so any exemption is their in IT act.

if yes

Is there any way that one can argue that our client need to deduct tds u/s 194I because maximum car owner transaction during the year was less than 180000.So he has to convince very few car owner to deduct tds

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2012 if yes

Is there any way that one can argue that our client need to deduct tds u/s 194I because maximum car owner transaction during the year was less than 180000.So he has to convince very few car owner to deduct tds

Anand Modi

Anand Modi (Expert)
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07 November 2012 Firstly TDS by your client is compulsary only when your client is a TAX Audit assessee.

A person providing service has to do TAX Audit if the gross receipts exceeds 25 lakhs for FY 12-13.

Hence as per Income Tax Act there is no need for Tax Audit.

Even than if your client want to deduct TDS the he has to obtain TAN Number and then he can deduct TDS.

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Anand Modi

Anand Modi (Expert)
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07 November 2012 Your client can claim refund of TDS by filing Income Tax Return

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2012 my client doing tax audit every year

my question is my client want to deduct tds but the car owner to whome my client paying annually less than 180000 they are arguing donot deduct tds as our 194I applicable only when if exceeds 180000,& they are arguing they are not coming under 194C