28 May 2010
a company had sent his employee to foreign for some work. company has purchased ticket from some travel agent. agent has sent his bill of rs 25000 of the ticket. Q whether company is liable to deduct tds? Q is it just reimburshment and not liable to tds?
28 May 2010
NO. The provisions of Sec 194C does not apply to payments made to Airlines or travel agents for the purpose of travel of individuals even though the payment/credit is made by the specified persons. But, if the aircraft is chartered for carriage of passengers or goods, this section shall be applicable. [Circular No.713 dt.2-8-1995 and No.715 dt.8-8-1995]
28 May 2010
Question 6 : Whether payment under a contract for carriage of goods or passengers by any mode of transport would include payment made to a travel agent for purchase of a ticket or payment made to a clearing and forwarding agent for carriage of goods ? Answer : The payments made to a travel agent or an airline for purchase of a ticket for travel would not be subjected to tax deduction at source as the privity of the contract is between the individual passenger and the airline/travel agent, notwithstanding the fact that the payment is made by an entity mentioned in section 194C(1). The provision of section 194C shall, however, apply when a plane or a bus or any other mode of transport is chartered by one of the entities mentioned in section 194C of the Act. As regards payments made to clearing and forwarding agent for carriage of goods, the same shall be subjected to tax deduction at source under section 194C of the Act. pART OF Circular : No. 714, dated 3-8-1995.
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