TDS on Agents

This query is : Resolved

Deekshit (Querist)
Follow

29 January 2010 i've heard from quite a few of my collegues that we don't have to deduct tds on service rendered by travel agents.(For booking tickets). is it true?? and why such an exemption for them??

CA Prashant Gupta

CA Prashant Gupta (Expert)
Follow

29 January 2010 this is true. because it is reimbursement of exp.
For humor : agent purchased ticket for you and if you will deduct TDS on it how he can survive.
normally agents issue two types of invoices one for ticket which is as nature of reimbursement so no TDS and one for their commission which is liable to TDS.

Deekshit

Deekshit (Querist)
Follow

29 January 2010 if two invoices are available then the question of doubt does not arise.. but, what if there is a single invoice?? generaly when something like this happens in 194C they ask us to deduct tds on full (Invoice) amt.

So should the similar thing be done here?? can we deduct tds on full amt. as tds on Brokerage and Commission??

Deekshit

Deekshit (Querist)
Follow

29 January 2010 in my case the payment is made for booking flight tickets.. so he will be keeping some amt. as his margin/commission.. so aren't we liable to deduct tax for the commission??