TDS on Travelling agent (Income Tax)

This query is : Resolved

Vadiraj.N.Naik

( Author )
23 June 2011

Question is
A domestic company has made transactions like booking the tickets such as air, train and bus with the travelling agent during the year 2010-11.Value of such total transactions 76755/-Whether TDS is applicable ? If yes pls specify the rate and under which section it is applicable?

Pls guide.Thank you

CA PARAS BAFNA

( Expert )
23 June 2011

In the above case, if a single payment to the agent at any time during the year does not exceed30000/- I do not think that
the requirement of TDS will arise.

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Logically in the total amount paid of 76755/- if amount paid in respect of
railway tickets exceed 1655/ only, which is quite possible, then the total amount paid to him reduces to below 75000/- and as such no TDS is required.

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Please note that from the definition of "Work" U/s 194C -carriage of passenger by railways has been excluded.

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In other cases -
If the booking agent Concern is an Individual or HUF TDS will be deducted @1%.

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In case of others (Firm, Company etc.)
TDS @ 2% .

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Please refer Section 194C for more details.

Vadiraj.N.Naik

( Author )
23 June 2011

Yes sir,
Rs.1057 is towards railway ticket, balance is air fare, i think some approx Rs.700 will come more than statutory limit.
Thanks