TDS on air travel bills
This query is : Resolved
Sonnal Khandaray
(Querist)
19 October 2021
Dear All
Pls suggest: whether tds is deductible on bill raised for travel company for air travel bills? if yes, at what rate and under which section?
Thanks in advance.
Pls suggest: whether tds is deductible on bill raised for travel company for air travel bills? if yes, at what rate and under which section?
Thanks in advance.
Dhirajlal Rambhia
(Expert)
19 October 2021
As per CBDT circular no 715 Dated 08.08.1995 ...
The payments made to a travel agent or an airline for purchase of a ticket for travel would not be subjected to tax deduction at source as the privity of the contract is between the individual passenger and the airline/travel agent, notwithstanding the fact that the payment is made by an entity mentioned in section 194C(1).
Hence the No tax should be deducted u/s 194C on payment made to travel agent/airline for booking of tickets.
The payments made to a travel agent or an airline for purchase of a ticket for travel would not be subjected to tax deduction at source as the privity of the contract is between the individual passenger and the airline/travel agent, notwithstanding the fact that the payment is made by an entity mentioned in section 194C(1).
Hence the No tax should be deducted u/s 194C on payment made to travel agent/airline for booking of tickets.
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