Service tax and tds on commission

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C.Balaji (Querist)
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08 October 2012 A travel agent - on Commission amount (which he charges from the customer) - Service tax is applicable.. Is there any liability to deduct TDS on the amount paid to the travel company (only on Commission - 194H) ? And TDS on the commission including or excluding Service Tax?

How come the Travel agent show the Commission amount separately on the INVOICE given to the customer?

Please reply.

Manish Khandelwal

Manish Khandelwal (Expert)
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08 October 2012 yes TDS is to be deducted if commision amount is more than 5000 and TDS will be deducted on the commission amount+service tax amount.

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C.Balaji

C.Balaji (Querist)
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08 October 2012 Thanks for the Prompt and immediate reply. How should the Travel agent raise an invoice? If u could elaborate on this issue..

C.Balaji

C.Balaji (Querist)
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08 October 2012 whether the travel agent should charge, Actual amount+TDS+Commission+service tax?

Manish Khandelwal

Manish Khandelwal (Expert)
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08 October 2012 dear you are getting it wrong.
tds will be deducted by the payer not by the receiver of commission.
and tds will be deducted on commission + service tax amount.

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C.Balaji

C.Balaji (Querist)
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08 October 2012 yes. Tds will be deducted by the payer. for eg: Rs.100 - Actual amount. Commission - Rs.10. Service tax - Rs.1.236.
Tds on Rs.11.236 @ 10% rite? ie.1.1236.
Incase the agent collects Rs.111.236 from the customer, how much he should remit to the Tavel Company? is it 100+1.1236?
Rs.1.1236 tds amount should be remitted by the agent? since he has received the entire amount from the customer inclusive of Commission (entire) and service tax.. Correct me if am wrong...

Manish Khandelwal

Manish Khandelwal (Expert)
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08 October 2012 yes you are right no corrections

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C.Balaji

C.Balaji (Querist)
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08 October 2012 Thank You so much brother...

Manish Khandelwal

Manish Khandelwal (Expert)
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08 October 2012 its ok dude you can contact me on any other tax related matter i m keen to resolve tax queries

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C.Balaji