Trader
2616 Points
Joined August 2009
The Circular 715 suggests that privity of the contract is between the individual passanger and not the payor and airlines. Nowif the individual passanger himself is the proprietor of the business paying for travel by air, what happens? The individual is the person paying and the privity of the contract is between the individual and the airlines. Should TDS be deducted from airlines. I do not think they will allow it and individual will land up paying higher travel costs if it is for business. However, if individual sends his employee by air then he will not have to deduct the TDS from the airlines. Therefore if you are a proprietor, just be employed by another proprietor and you employ the other proprietorin your own proprietorship. When you wish to travel you travel for his poprietorship and vice versa. Then no TDS will be applicable.