TDS applicable on payment to Tour Operator

This query is : Resolved

N J Ansari (Querist)
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11 July 2008 Is TDS to be deducted on payment to
Tour operator ( composit charges
includes Air fare and Hotel stay
charges etc.)?

If yes, under which Section.

CA. Ramesh P Choudhary

CA. Ramesh P Choudhary (Expert)
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11 July 2008 Under 194 C, if there is an oral or written or even an implied contract,TDS is attaracted on total value of contract.TDS is on total value of contract which includes value of material and all other charges for works carried out.

However the Central Board of Direct Taxes has clarified that provisions of 194 c, do not apply to payments made to the airlines or the travel agents for purchase of tickets for air travel of individuals.

HUF's and individuals have to deduct TDS only if they are covered under Tax Audit under sec 44AB.

N J Ansari

N J Ansari (Querist)
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11 July 2008 We are not making payment to Airlines or Travel Agents but to Tour Operators.

Please clarify.

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N J Ansari

N J Ansari (Querist)
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12 July 2008 We are not making payment to Airlines or Travel Agents but to Tour Operators.

Please clarify.