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TDS on travel bill

TDS / TCS 4386 views 5 replies

Hi,

Please confirm whether TDS required on travel  bills of pvt. airlines?In the case of Air Travel the bill normally shows the anount of cost of fuel etc. incurred by the Airlines and then a nominal sum towrds services.Should TDS required on the whole amount or only on the service charges by the airlines.

Replies (5)

Dear Pallavi, 

I hope this clears ur doubt -

The provisions of section 194C do not apply to the payments made to the airlines or the travel agents for purchase of tickets for air travel of individuals. The provisions shall however apply when payments are made for chartering an aircraft for carriage of passengers or goods. This clarification will apply mutatis mutan­dis to the tickets for travel of individual by any other mode of transport also—Circular : No. 713, dated 2-8-1995.

Hi,

Pls look the above query in respect of  company i.e. company making payment for the official tour of its employees????

Dear Pallavi,

Unless the company is chartering the aircraft, the provisions of TDS shall not apply..

I have one more query....

we are making reimbursement of travel exp of one of our professional for which he has raised a bill inclusive of service tax.Now as in this case he professional is charging service tax, he is deeming it as a part of his service( he can exclude the service tax in this case as he is acting as a pure agent for the purpose), so shall we require to deduct TDS on such payment?

Dear Pallavi,

This thing is clarified by circular no. 715 that in case the Bill is inclusive of expenses then TDS has to be deducted on the entire amount(including reimbursements)..


CCI Pro

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