Tds u/s 194c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 March 2012 in our organisation employees will go for foreign travel . their hotel accomodation & insurances charges are paid by travel agent first and then we reimburse it . shall we liable to deduct tax from the payment made to travel agent for this hotel accomodation & insurance charges reimburse by us. they are giving the invoice for the total amount ie airticket charges+ other expenses(hotel accomodation, insurance charges etc)

CA Prashant Gupta

CA Prashant Gupta (Expert)
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26 March 2012 as this payment is outside India so section 195 is applicable and payment to hotel and insurance is not covered in it. Agent paid these on behalf of us so same rule/act will be applicable on him also.
my point of view is as sec 195 is not taking this for TDS deduction so neither agent nor company is liable to deduct TDS on this. But condition is this hotel and insurance charges are for outside india.