Tds on foreign tour expenditure ??
This query is : Resolved
26 October 2012
Hello everyone,
during ledger scrutiny i found travelling expenditure of director Rs.45000/- paid to the agents. this amt includes cost of tickets & his commission.
My question :
1. is TDS applicable on it ?
2. if it is a package tour ie. air fare+hotel exp+food etc. then will tds be applicable ?
waiting for your reply.
during ledger scrutiny i found travelling expenditure of director Rs.45000/- paid to the agents. this amt includes cost of tickets & his commission.
My question :
1. is TDS applicable on it ?
2. if it is a package tour ie. air fare+hotel exp+food etc. then will tds be applicable ?
waiting for your reply.
27 October 2012
Could you mention the line items on the bill submitted by the agent?
27 October 2012
you spend how TDS will apply? when u earn tds applies is it not? tax deduction at source so the airlnes coy or hotel etc may pay but how you!
27 October 2012
In this case you are liable for payment of service tax on airline tickets, hotel accomodation arranged by the tour operator but no TDS is applicable as you are making the payment and not otherwise.
27 October 2012
airline takes service tax on tickets. so where tds on this man!
27 October 2012
As mentioned by Abhishek,
1.Amount has been paid to agent.
2.Further, it's mentioned the agent has charged commission.
Now I assume a single bill has been presented by the agent,
So TDS is applicable.
Abhishek, I'll be in a better position to comment if you could mention the break up of the total bill presented by the travel agent.
1.Amount has been paid to agent.
2.Further, it's mentioned the agent has charged commission.
Now I assume a single bill has been presented by the agent,
So TDS is applicable.
Abhishek, I'll be in a better position to comment if you could mention the break up of the total bill presented by the travel agent.
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28 October 2012
breakup of total bill
situation 1
air fare (incl. commn) - Rs.40000/-
accomodatation & food ( incl. com)-Rs.60000/-
total Rs.100000
situation 2
air fare - Rs.32000/-
accomodation & food/-50000/-
commission - 18000/-
total- 100000
how the company will deduct tds ?
situation 1
air fare (incl. commn) - Rs.40000/-
accomodatation & food ( incl. com)-Rs.60000/-
total Rs.100000
situation 2
air fare - Rs.32000/-
accomodation & food/-50000/-
commission - 18000/-
total- 100000
how the company will deduct tds ?
28 October 2012
In both the situations TDS is applicable as these payments are not in the nature of reimbursements.
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29 October 2012
what will be the tds amount in this case i.e. whether it will be deducted on entire pmt of Rs.100000 (not logical) or only on commission amount. in the first case company do not know the commission amt since same is not shown sepertely in the bill so will Tax be deducted on entire 100000 in the first case.
29 October 2012
Am not sure what makes you say "Not logical".
A bill presented for payment has the supportings based on which one could easily work out the commission. Alt., refer the work order with the agent.
If a single bill is submitted for airfare, accomodation & commission then TDS is applicable on the total bill value.
(The actual practice followed is somewhat different)
A bill presented for payment has the supportings based on which one could easily work out the commission. Alt., refer the work order with the agent.
If a single bill is submitted for airfare, accomodation & commission then TDS is applicable on the total bill value.
(The actual practice followed is somewhat different)
29 October 2012
in case of consolidated bill i said its not logical because
suppose total bill mat is 100000 it includes commission of Rs.8000/-
tax will be deducted u/s. 194H @10% which comes to Rs.10000/- which is more than the income of the agent, which is not the intention of the lawmaker.
suppose total bill mat is 100000 it includes commission of Rs.8000/-
tax will be deducted u/s. 194H @10% which comes to Rs.10000/- which is more than the income of the agent, which is not the intention of the lawmaker.
29 October 2012
in case of consolidated bill i said its not logical because
suppose total bill mat is 100000 it includes commission of Rs.8000/-
tax will be deducted u/s. 194H @10% which comes to Rs.10000/- which is more than the income of the agent, which is not the intention of the lawmaker.
suppose total bill mat is 100000 it includes commission of Rs.8000/-
tax will be deducted u/s. 194H @10% which comes to Rs.10000/- which is more than the income of the agent, which is not the intention of the lawmaker.
29 October 2012
abhishek is right
29 October 2012
intention of law maker is on one's income only that is what way TDS is done?
29 October 2012
always when one frames questions he or she should know how to frame the question else a lot of confusions pls. this is not to say anything like offensives but to streamline think process pls...adv.dr g balakrishnan
29 October 2012
Abhishek,
You could ask the agent to submit two separate bills - one for the expenses such as air ticket, accomodation & other actuals paid by him on behalf of the company. Treat this as PURE reimbursements, hence NO TDS is applicable on this payment.
In the second bill, the agent should claim his commission/charges etc. Deduct TDS only on this payment.
This is the actual practice. I had to educate my agent & then he became a smart cookie!
You could ask the agent to submit two separate bills - one for the expenses such as air ticket, accomodation & other actuals paid by him on behalf of the company. Treat this as PURE reimbursements, hence NO TDS is applicable on this payment.
In the second bill, the agent should claim his commission/charges etc. Deduct TDS only on this payment.
This is the actual practice. I had to educate my agent & then he became a smart cookie!
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18 December 2012
Agreed with Mr. Kishor. should take two separate bills to avoid misunderstanding.
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