Tds on airline ticket booking

This query is : Resolved 

09 July 2013 Dear Sanjay sir,
We Being an AOP in Constuction book airline tickets 13lcs p.a. for employees & Directors for business tours,from a A Pvt.Ltd. co.who charges service Tax in bill. do i hv to deduct tds on 13lacs.since TDS is applicable on Services rendered plz reply immediately
thnx


09 July 2013 This 13 lacs must be including Price of airlines ticket. TDS not required to be deducted.

09 July 2013 Circular : No. 713, dated 2-8-1995.

1)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.

2)The provisions shall however apply when payments are made for chartering an aircraft for carriage of passengers or goods.

3)This clarification will apply mutatis mutan­dis to the tickets for travel of individual by any other mode of transport also.


Thanks & regards
Ganesh babu k

10 July 2013 Agreed with sanjay gupta.

10 July 2013 We should avoid one word replies saying Agreed...

Our reply in expert column should add value to earlier replies or better reply than above reply..

If you really want to appreciate the opinion of expert Use "Thank user" button to convey your Appreciation.

Hope u take it positve

10 July 2013 Rightly said by Ganeshbabu Ji...I really appreciate the view...We as an experts should try to add value with our every reply. We should reply only if we have a different view or when we want to add something. We should avoid simply writing agreed or agree with expert.


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