Tds rates

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I am booking domestic and international air ticket for my company through a travel agency , agency name xxxx travels so tds is applicable or not. If it is applicable in which category. How to know that it is a individual or a company or a partnership firm . And what is the rate.
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Clarification regarding applicability of section 194C in case of tickets sold by airlines and travel agents to customers

1. The Finance Act, 1995 has amended the provisions regarding tax deduction at source contained in section 194C of the Income-tax Act. As per the amended provisions, deduction of tax at source is to be made, inter alia, from payments made in respect of contracts for carriage of goods and passengers by any mode of transport other than Railways.

2. A number of queries have been received as to whether tax has to be deducted at source from payments to travel agents or the airlines for purchase of tickets for travel by air.

3. The matter has been examined by the Board. It is clarified that 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 of goods.

4. The clarification in para 3 (above) shall apply mutatis mutandis to the tickets for travel of individual by any other mode of transport also.

Circular : No. 713, dated 2-8-1995.

 

The payments made to a travel agent or an airline for purchase of a ticket for travel would not be subjected to tax deduction at source as the privity of the contract is between the individual passenger and the airline/travel agent, notwithstanding the fact that the payment is made by an entity mentioned in section 194C(1). The provisions of section 194C shall however apply when a plane or a bus or any other mode of transport is chartered by one of the entities mentioned in section 194C—Circular : No. 715, dated 8-8-1995.

 

 

Hence No TDS applicability.  

Further, you can know the status of an entity through its PAN no. Check the 4th alphabet in the pan, for individuals it would be 'P', 'F' for firm and 'C' fo company

 


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