PRITIKA (CA FINAL Student) (44 Points)
14 May 2010
Hey can anyone pls let me know whether there is any Tax Deduction at source for payment made to Travel Agent by another travel agent for a foreign trip?????
CA. RUPESH JOSHI
(Chartered Accountant)
(174 Points)
Replied 14 May 2010
Assuming that the payment made to the travel agent is in the nature of Commission / Brokerage - sec 194H would get attracted and TDS @ 10% is deductible, provided the travel agent is a person other than individual or HUF.
PRITIKA
(CA FINAL Student)
(44 Points)
Replied 14 May 2010
Thanx
but actually i want to know if a package is being sold to travel agent by another travel agent then would provisions of TDS be attracted???
CA. RUPESH JOSHI
(Chartered Accountant)
(174 Points)
Replied 14 May 2010
In my view since Sale / Transfer of Tour Package does not fall in any of the categories mentioned under Chapter XVII of the I.Tax Act, there is no requirement of any tax deduction.
Sudheer Reddy
(Emp)
(84 Points)
Replied 14 May 2010
If a Company booked tickets to foreign trip for official purpose through a travel agent. Then is there any chance to deduct the TDS on the payment
Pls clarify this
thanks in advance
CA. RUPESH JOSHI
(Chartered Accountant)
(174 Points)
Replied 14 May 2010
No TDS is not applicable on ticket booking, as what the company is paying to the travel agent is fare charges, which cannot be treated as income of the agent
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