T.d.s.on travel agent service.

This query is : Resolved

ankit agrawal (Querist)
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23 August 2013 Dear Sir/Mam,
If a tour including accomodation,flight tickets,site seeing etc. is arranged by Tour & Travel agency & agency is Charging us composite bill of suppose rs.1,00,000/- & also charging service tax in bill rs.12,360/-.then,how much % of t.d.s.is to be deducted & under which section & on which amount.

Thanks,
CA Ankit Agrawal.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 August 2013 TDS not required to be deducted on the bills of Travel Agent.

Ganeshbabu K

Ganeshbabu K (Expert)
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23 August 2013 In my opinion it looks like Service contract/it is a packaged tour

So

TDS 194C will be applicable and tds required to be deducted @ 2%/1% accordingly
generally in case of travel bills where tds not applicable they will not charge 12.36% service tax...

ankit agrawal

ankit agrawal (Querist)
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23 August 2013 PLS.GIVE A SUPPORTING EVIDENCE FOR YOUR REPLY.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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23 August 2013 Dear Ankitji,

Please Refer-
Section 194C: Explanation (iv) defining work. Under sub clause (c) of the said explanation carriage of goods or passengers by any mode of transport other than by railway is included in the definition of "work".
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In my view, the tour operator's services include the similar type of Work.
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As such TDS is required to be deducted
@ 2% /@1% on the "any" sum payable-means amount including Service Tax.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 August 2013 TDS bill includes cost of tickets also. So should TDS be deducted even on that amount?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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23 August 2013 It depends upon the fact that how the tour operator manages the tour.
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In case of purchase of tickets in Individual names of the passengers vide circular No 715 of dated 08/08/1995, CBDT had clarified as under -
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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.
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The provisions shall, however, apply when payments are made for chartering an aircraft for carriage of passengers of goods.
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But when the ticket amount is not disclosed
by the Tour Operator -as a matter of policy- then on full amount TDS can be deducted.
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