Tds on tour operator

Please find attched for more clarifications provided in circ.715 dated 08.08.1995

Thanks & regards

Ganehbabu k

Line from the Ciruclar

Dear Nirmit & Ganeshbabu .. i know tds not applicable on booking of air ticket..

M just asking here ..  other party is tour operator not travel agent ..  n we are also tour operator ..

n we purchased a tour package from othre party for our client so in this case tds would be deducted or not?

Your Client i.e the End Consumer has to deducat TDS if he is liable to Deduct TDS u/s 194C @ 1% or 2% whatever rate applicable 

But the transaction between you(tour operator)  and the tour Operator/travel agent the there is no liabilty of TDS.

I think most of your client  is an Individual/ HUF, in case no TDS is required to deduct if one Indivdual /HUF carrying out any contract from doing any personal work i,e. payment to tour operator for arrenge ture for himself, his family, relatives etc. but when a coaching center, commercial training inistute payment to organized tour for encaraging skill of there worker/ employees/ they are required to deduct TDS @ 1% or @ 2% as the case may be.

I think most of your client  is an Individual/ HUF, in case no TDS is required to deduct if one Indivdual /HUF carrying out any contract from doing any personal work i,e. payment to tour operator for arrenge ture for himself, his family, relatives etc. but when a coaching center, commercial training inistute payment to organized tour for encaraging skill of there worker/ employees/students they are required to deduct TDS @ 1% or @ 2% as the case may be.

Originally posted by : Nisha Yadav
	Dear Nirmit & Ganeshbabu .. i know tds not applicable on booking of air ticket.. M just asking here ..  other party is tour operator not travel agent ..  n we are also tour operator .. n we purchased a tour package from othre party for our client so in this case tds would be deducted or not?

Yes,

That is what my intension is to..

His audiotor may claiming nil tds on base of above said notification..

But as it is tour operator which includes ..travel,food,travel guides charges, hotel,and many other charges will includes

So it is contract and hence TDS 194C will be applicable

Thanks & regards

Ganeshbabu k

Yes i agree with you  dear Ganeshbabu But my vendor (other tour operator) is not agree with that n said tds would not deduct in this  case.

N he has 500+ clients n no one deducte tds ...  

now much confuse what to do .. Please provided any case or notification regarding this

1. Payment made Rs.30,000/- and above value payee should be deduct TDS @ 2% . In your case you brougt a tour package from other tour operator they has been charged Package value+Service Tax 12.36%+Service Charges= Gross Value .

2. Suppose they doesn't charges service tax in invoice that is their mistake , As per income tax act you should/must deduct TDS @ of 2% So your bill value is Rs.48,000/- you deduct TDS @ 2% Rs. 960/- Balance Rs. 47,040/- you have to pay.

3. Further you know ususal TDS return procedures like remittance, returns,certificates.