Dear Sir,
Presently I am handling a client who is in the tour operating business. I have some queries relating to TDS applicability. Can you please advise!
Scenario 1:
ABC Pvt Ltd is engaged in providing Tour Operating Services located in India
Mr D customer of ABC Pvt Ltd approaches for a package tour to Italy.
Tour Package includes Flight, Cruise, Hotel, Visa etc.
ABC Pvt Ltd approaches the below vendors for:
EFG Pvt Ltd is providing Air Ticket Booking Services located in India (Pays them 70k for ticket + 5k for handling charges)
LMN Pvt Ltd is providing Visa Services located in India (pays them 30k for visa + 5k for handling charges)
XYZ is a destination tour management company located in Italy and has no Indian PAN, Cruise Booking & Hotel booking is done by XYZ (pays them 60k through forex)
Should I make payment u/s 195 for XYZ
Whether TDS is applicable to the above transaction? If yes for which value does TDS need to be deducted and under which section does TDS need to deduct?
Scenario 2:
ABC Pvt Ltd is engaged in providing Tour Operating Services located in India
Mr D customer of ABC Pvt Ltd approaches for a package tour to Italy.
Tour Package includes Flight, Cruise, Hotel, Visa etc.
ABC Pvt Ltd approaches the below vendors for:
EFG Pvt Ltd is providing Air Ticket Booking Services located in India (pays them 70k for ticket + 5k for handling charges)
LMN Pvt Ltd is providing Visa Services located in India (pays them 30k for visa + 5k for handling charges)
PQR Pvt Ltd is providing Cruise Booking Service located in India (pays them 30k for cruise bookings) who is acting as a booking agent only
STU Pvt Ltd is providing Hotel Booking Service located in India (pays them 30k for cruise bookings) who is acting as a booking agent only
Whether TDS is applicable to the above transaction? If yes for which value does TDS need to be deducted and under which section does TDS need to deduct?
CAclubindia
