Recently, our company has appointed a travel agent for booking of all the hotel stay requirement of company's employee, when they go out of city for office work. Agent raises a invoice on a monthly basis for all the booking done by him. However in his invoices, he doesn't show his service charges separately. For 1st & 2nd invoice, we have deducted TDS @ 194C on whole amount of invoice. Is this correct approach?
Please tell me tds will be attracted for such payment & under which section?
26 February 2016
Normally Invoice is Claim Hotel Actual Bills +Service Charges that is Correct Accounting. Ask Ur Travel Agent Divide Actual bills of Hotel Booking (Keep Attachment of Hotel bills)+Service Charges. TDS is Deduct on Full Amount of Bill .
CAclubindia
