26 March 2010
We have booked Air Ticket through an Agent and he charged us service tax @1.2 (plus 3% cess on Service Tax) on Rs. 156263 and he charged Rs. 7499 as PSF. Total Bill Amount is Rs. 165692. So is it come under the TDS deduction, if yes then what is the rate of tax and on Which amount will be consider for TDS Deduction i.e. Rs. 156263 or Rs. 165692 or Rs. 7499
26 March 2010
There are no liability to deduct TDS on payment to Agent.
The travel agent issuing ticket on behalf of the airlines for travel of individual passengers, would not be required to TDS from sums payable to airlinesas he acts on behalf of the airlines.
Plz refer (vide answer to question no 7 of circular no.715:215 ITR (st.) 14)