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A hotel accountant is seeking urgent clarification on TDS (Tax Deducted at Source) obligations for commissions paid to online travel agencies (OTAs) like MakeMyTrip and Goibibo. The core issue is whether the hotel is liable for TDS when the OTA deducts its commission before remitting the balance. The advice given is that TDS is still applicable, and the hotel should request the OTA to deduct commission less TDS. For foreign companies like Booking.com, TDS is generally not required.

jatashanker singh

jatashanker singh (Querist)

25 December 2021 Sir I have newly joined in Hotel Industry As an accountant my question is that e-commerce companies like Make My Trip, goibibo etc. Make Bookings for us. These e-commerce companies deduct their commission and pay the rest amount to us. Now Commision requires 5% tds deduction, but as they are deducting there commission themselves so we are not making commission payment directly. So pl tell me whether in above mentioned condition are we still liable to deduct tds or not? Pl Help.