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NANDU PAREEK (Querist)
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19 August 2011 Dear Sir,

Our few employees went to attend an exhibition overseas.It was a package tour for 5days /4 nights .The arrangement is made by the tour & travel operator.

Pl guide whether We have to deduct TAX at the time of making the payment to tour operator. If yes under which section ?

Thanks
N Pareek

CS Bijoy

CS Bijoy (Expert)
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19 August 2011 The following general conditions should be satisfied for a payment to qualify for deduction of tax u/s 194C

1.Payee:The contract should be entered by the following specific person Central government, state govt or Local authority, Cent or State Corp. covered estb. under Cent./state act, Any co-operative society, Any company, Any authority constituted In India under or b the law for town planning and other specific work as defined, any society, any Trust,any firm, any University with specific conditions, Societies register under the specific acts, any firm any HUF? individual if turnover exceeding 40lacs or profession receipt exceeds 10lakh in immediate preceding year from 01.06.2008 any AOP /BOI

2.payer Resident contractor payment to subcontractor by resident contractor

3.work contract between payer and payee for "carrying out any work" Including supply of labour for carrying out any work.
So in general three basic genral condition should be fulfilled to make a payment eligible for deduction of tax at source u/s 194C.if any one of three content/condition is missing ,then section 194C will not be applicable.