TDS on Air Ticket Bils

TDS 6871 views 11 replies
Dear all Whether the TDS u/s 194 C is to be deducted on Air Ticket purchase from Travel agents. the Travel Agents issue their Bill with their commission and charge serive tax on their commission Thanx J P Purohit
Replies (11)

no we can not deduct tds untill and unless his commission is Rs.20000/=. after that we can deduct tax as per rate applicable.On the amount of fare , as it is reimbursement, we cant not deduct tax.

 

 

I feel tax should be deducted u/s. 194H on the commission amount if the commission amount exceeds RS. 2500

when an airlines ticket is booked either through travel agent or from direct airlines, it is not subject to any tds liability for the payment as there is contract between indivisual passenger and airlines itself.It doesn't matter who has booked or paid. However when whole airlines may be reserved than it will subject to TDS U/S 194C like goods transport.

who can deduct TDS...??

also refer circular no.-715 dated Aug 8, 1995

Originally posted by :Sunali
" who can deduct TDS...?? "


 

If the entire aircraft or helicopter will bw booked then certainly payee will deduct the tds.

Please let me know whether TDS to be deducted at 11.33% for professional consultant includng travel reimbursements or only for professional fees.

Originally posted by :J P Purohit
" Dear all

Whether the TDS u/s 194 C is to be deducted on Air Ticket purchase from Travel agents. the Travel Agents issue their Bill with their commission and charge serive tax on their commission

Thanx J P Purohit
"


 

Dear friend

  i Think its comes u/s 194 H (Commission and Brokarage)

Tax 10% and 3 % E C

Originally posted by :GAGAN
"


Originally posted by :J P Purohit


"
Dear all

Whether the TDS u/s 194 C is to be deducted on Air Ticket purchase from Travel agents. the Travel Agents issue their Bill with their commission and charge serive tax on their commission

Thanx J P Purohit
"




 
"


 

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.

 

do the TDs needs to be deducted while payment to travel agent for booking of air line ticket with service tax charged on the invoice .but the invoice not representing seprate charge for the reimbursement and the commission amount not seprately mentioned..

if there is a case on the subjecct matter pls even high light it...

thanks

prateek kapoor


CCI Pro

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