Implication of 194R on Travelling tickets

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This discussion clarifies whether a professional firm needs to deduct TDS under Section 194R when booking flight tickets for an employee or associate travelling to another state for client work. The consensus is that if the ticket is booked by the employer for business travel, it's considered a travelling expense of the firm, not a benefit to the individual, and therefore TDS 194R is generally not applicable. However, it's advised to check specific regulations regarding payments to travel agents if they were involved.

Brijesh

Brijesh (Querist)

04 May 2023 We are running a professional firm. We have clients in different States. If we send any outsider professional on our behalf to other state for resolving our clients problem and we booked a flight ticket for that professional through our corporate credit card. So do we need to deduct and deposit tds 194r on flight ticket as the tickets is in the name of that professional.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

04 May 2023 Its not benefit given to the professionals. The expenses are your travelling expenses & TDS u/s. 194R is not applicable over the professionals, but TDS over the payment to travel agent need to be checked.

Brijesh

Brijesh (Querist)

05 May 2023 Dear Sir
Thanks for the reply. Any travel agent is not involved, tickets are booked by us through online websites and there is no scope for mentioning our firm name.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

05 May 2023 As the payment is made by employer's firm for business travel of their employee/s, the expenditure is travelling expenditure of the firm and not employee..

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