T.d.s.on travel agent service.
This query is : Resolved
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.
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.
23 August 2013
TDS not required to be deducted on the bills of Travel Agent.
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...
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...
23 August 2013
PLS.GIVE A SUPPORTING EVIDENCE FOR YOUR REPLY.
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".
.
In my view, the tour operator's services include the similar type of Work.
.
As such TDS is required to be deducted
@ 2% /@1% on the "any" sum payable-means amount including Service Tax.
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".
.
In my view, the tour operator's services include the similar type of Work.
.
As such TDS is required to be deducted
@ 2% /@1% on the "any" sum payable-means amount including Service Tax.
23 August 2013
TDS bill includes cost of tickets also. So should TDS be deducted even on that amount?
23 August 2013
It depends upon the fact that how the tour operator manages the tour.
.
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 -
.
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.
.
The provisions shall, however, apply when payments are made for chartering an aircraft for carriage of passengers of goods.
.
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.
.
.
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 -
.
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.
.
The provisions shall, however, apply when payments are made for chartering an aircraft for carriage of passengers of goods.
.
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.
.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Reopen of assessment proceeding
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Gift Received from nonblood relative
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Rental income gst and it purpose
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
