Tds commission or brokerage
This query is : Resolved
10 April 2015
Railway ticket agent is libel for TDS Commission or Brokerage deduction?
CA.Sourabh Sethia
(Expert)
14 April 2015
pls clarify in detail what you are asking for
whether you are paying to railway agent for booking
or Railway Agent is paying commission to some one else.
whether you are paying to railway agent for booking
or Railway Agent is paying commission to some one else.
27 July 2025
Yes, **a railway ticket agent is liable for TDS deduction under Section 194H** of the Income Tax Act, 1961 — **TDS on Commission or Brokerage**.
---
### ✅ **When is TDS under Section 194H Applicable?**
Section 194H applies when:
* A person (other than individual/HUF not covered under tax audit) pays **commission or brokerage** to a resident
* TDS @ **5%** is deducted if the **payment exceeds ₹15,000** in a financial year (limit as of FY 2015-16)
---
### 🎫 **Railway Ticket Agents and Commission:**
* The commission received by a **railway ticket booking agent** (including IRCTC agents or authorized travel agents) is considered **"commission"** for rendering services.
* The principal (e.g., IRCTC or Indian Railways) pays the **commission for selling tickets** — this qualifies under Section 194H.
---
### 📌 Therefore:
* **Yes**, a railway ticket agent is **liable for TDS deduction on commission income** received from IRCTC or any principal.
* The **payer (IRCTC, travel aggregator)** is responsible for deducting TDS before making the commission payment.
---
### 💡 Note:
* TDS is **not required** if total commission does **not exceed ₹15,000** in a year (as per FY 2015-16 limits).
* TDS is **to be deducted at the time of credit** or **payment**, whichever is earlier.
---
Let me know if you need a draft communication or clarification letter format from a railway agent's side or payer's side.
---
### ✅ **When is TDS under Section 194H Applicable?**
Section 194H applies when:
* A person (other than individual/HUF not covered under tax audit) pays **commission or brokerage** to a resident
* TDS @ **5%** is deducted if the **payment exceeds ₹15,000** in a financial year (limit as of FY 2015-16)
---
### 🎫 **Railway Ticket Agents and Commission:**
* The commission received by a **railway ticket booking agent** (including IRCTC agents or authorized travel agents) is considered **"commission"** for rendering services.
* The principal (e.g., IRCTC or Indian Railways) pays the **commission for selling tickets** — this qualifies under Section 194H.
---
### 📌 Therefore:
* **Yes**, a railway ticket agent is **liable for TDS deduction on commission income** received from IRCTC or any principal.
* The **payer (IRCTC, travel aggregator)** is responsible for deducting TDS before making the commission payment.
---
### 💡 Note:
* TDS is **not required** if total commission does **not exceed ₹15,000** in a year (as per FY 2015-16 limits).
* TDS is **to be deducted at the time of credit** or **payment**, whichever is earlier.
---
Let me know if you need a draft communication or clarification letter format from a railway agent's side or payer's side.
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