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TDS deduction

28 August 2010

Hi all,

We as a company, make booked Air & train ticket through tour & travel agency. Is tds deduction liable when furnishing payments.

if tds to be deduct, what is its procedure & in which tds slabe to be deduct. please clear it

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3 Replies

CA. Rajesh P. Ahir (In Service @ PSU) (687 Points)
Replied 28 August 2010

CAN UYOU BE A MORE DETAILD

IF THERE IS A CONTRACT BETWEEN UYOUR COMPANY AND AGENCY FOR BOOKING OF TICKITS THEN U/S 194C TDS IS DEDUCTED @ 1% AND YOUR COMPANY NEED TO FILE QUARTERLY E-TDS RETURN .

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Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 28 August 2010

Payments to airlines/travel agents - The provisions of section 194C do not apply to the payments made to the airlines or the travel agents for purchase of tickets for air travel of individuals. The provisions shall however apply when payments are made for chartering an aircraft for carriage of passengers or goods. This clarification will apply mutatis mutandis to the tickets for travel of individual by any other mode of transport also—Circular : No. 713, dated 2-8-1995.

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 provisions 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—Circular : No. 715, dated 8-8-1995.