Tds-u/s 194c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2012 I want to know that if a payment has been made travel agent or an airline for purchase of a ticket exceeding the amount specified in sec 194C of Income Tax Act , then whether TDS is deductible on such payment u/s 194C ?

Please reply with reasons & all the possible situations ?

CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)
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13 August 2012 YES..TDS IS TO BE DEDUCTED..
IF YOU ARE TAKING REGULAR SERVICE OF TRAVEL AGENT, IT IS A NATURE OF CONTRACT.
SO THAT TDS IS TO BE DEDUCTED U/S194C..

BUT CHECK AMOUNT OF BILL IF ONE EXCEEDING RS 30000 OR ANNUALLY EXCEEDING OF RS 75000.

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SANYAM ARORA

SANYAM ARORA (Expert)
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13 August 2012 Yes the said amount falls under Sec 194 - C of I.T Act.

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CA Prashant Gupta

CA Prashant Gupta (Expert)
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13 August 2012 Don't agree with CA Praveen and Mr. Sanyam. if you are paying amount for ticket charges then it is not taxable. Circular No 715 dt 8 Aug 1995.
Air ticket charges are not taxable. Only agent service charges are taxable. that is why mostly travel agent issue two bills one for ticket charges and other for their service charges

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Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2012 Thanx to all ...