TDS ON PACKAGE TOUR OPERATORS
This query is : Resolved
19 November 2007
We have hired the services of a Packaged Tour Operator for organising our Dealers meet in Bangkok. Tour Operator offered us price of Rs 27775 - per person for expenses and Rs 500/- per person as his service charge. After completion of tour he raised the bill as follow
1. One bill for his service charges @ Rs 500/ - per person
2. One bill for tour arrangement @ Rs 27775 / - per person. He has not provided any supporting documents for claiming expenses reimbursement i.e. Airlines bill, Hotel bill, transport arrangement bills etc.
Please advise us whether we should deduct TDS on first bill only or on both the bills ? Does providing only detail of expenses without any supporting documents makes any difference ?
Further whether TDS will be deducted u/s 194 C or any other section ?
1. One bill for his service charges @ Rs 500/ - per person
2. One bill for tour arrangement @ Rs 27775 / - per person. He has not provided any supporting documents for claiming expenses reimbursement i.e. Airlines bill, Hotel bill, transport arrangement bills etc.
Please advise us whether we should deduct TDS on first bill only or on both the bills ? Does providing only detail of expenses without any supporting documents makes any difference ?
Further whether TDS will be deducted u/s 194 C or any other section ?
19 November 2007
The nature is contractual and hence TDS u/s 194C shall be applicable. There are no supporings for re-imbursements claimed. Where supportings are not attached to the re-imbursement bill the same is considered as an allowance hence TDS shall also be deducted on the re-imbursement. Incase of non-deduction, the entire expense may be disallowed u/s 40(ia).
19 November 2007
reimbusements if not claimed separately and if claimed along with original bill, the total amount is liable for tds.
hence pl. ask the agent to claim reimbursements separately, to avoid TDS liability.
TDS IS APPLICABLE ON BOTH BILLS AS PER SEC 194 C.ONLY REIMBURSEMENTS CAN BE AVOIDED FROM TDS BY FOLLOWING ABOVE METHOD.
PL. VERIFY SERVICE TAX LIABILITY OF THE SERVICE PROVIDER IF HIS GROSS TAXABLE SERVICES EXCEED THE EXEMPTION LIMIT OF RS. 8 LAKHS PER ANNUM.
R.V.RAO
hence pl. ask the agent to claim reimbursements separately, to avoid TDS liability.
TDS IS APPLICABLE ON BOTH BILLS AS PER SEC 194 C.ONLY REIMBURSEMENTS CAN BE AVOIDED FROM TDS BY FOLLOWING ABOVE METHOD.
PL. VERIFY SERVICE TAX LIABILITY OF THE SERVICE PROVIDER IF HIS GROSS TAXABLE SERVICES EXCEED THE EXEMPTION LIMIT OF RS. 8 LAKHS PER ANNUM.
R.V.RAO
19 November 2007
Thanx for immediate replies
Tour operator is raising bill in which he is mentioning the detail of expenses incurred in tour. He has no original bills as he has also contacted with a local Bangkok tour operator. He has no Invoices / expenses bills etc. He is simply charging Rs 27775/- per person in a bill.
Tour operator is raising bill in which he is mentioning the detail of expenses incurred in tour. He has no original bills as he has also contacted with a local Bangkok tour operator. He has no Invoices / expenses bills etc. He is simply charging Rs 27775/- per person in a bill.
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
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- RELATED TO TRIBUNAL APPEAL
- TODAY INCOME TAX SITE IS NOT WORKING ANY OFFICIAL EXTENSION
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- ITR 4 and Bank transactions
- Can we choose not to report losses in ITR3 if they cannot be carried forward?
- EMI ISSUE IN HOUSING LOAN OLD REGIME
- TDS AND ITR ISSUE
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
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
