TDS on Outbound Travel.

This query is : Resolved

Piyush Jain (Querist)
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08 July 2010 Dear Profeesional Colleages,

Our company is arranging outbound travel for its customers, we have given the contract to one of the travel agent, now the travel agent submits differnt bills for Hotel, Air Tickets and Misc. Services outside India.

Whether TDS is applicable on this or if Travel agent submit one consolidated bill, TDS is applicable.

Regards,

Piyush Jain

Srikant

Srikant (Expert)
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08 July 2010 TDS is liable to be deducted under 194C as contractors.

Since Section 194C is applicable the Aggregate Bill amount exceeding Rs 50,000 or a Single Bill amount exceeding Rs 20,000 will attract TDS.

W.e.f. 01.07.2010 this limit has been extended to Rs 75000 and Rs 30000 respectively.

However, Amount paid to Traveling Agent for the purchase of Tickets would not be subject to TDS,,,,,,,,if the contract is between Individual passenger and travel agent.THIS IS NOT APPLICABLE TO YOU IF IN YOUR CASE THE CONTRACT IS BETWEEN THE COMPANY AND AGENT.

Hotel Bills:
Services provided by hotels to its customers by providing different facilities do not constitute "work " within the meaning of Section 194C.,,,,But for this you need to prove that the bills are raised by the Hotels directly on the assessee.
So you can not take this benefit also.

Reimbursement of Expenses:
Section 194C applies to "Any Sum Paid".
Hence it is covered.

So, on the basis of above facts, I can suggest that you better deduct TDS, whatever may be the billing pattern subject to the limits as mentioned above.

Thank you.

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