Tds on payment made to tours and travels

This query is : Resolved

Haresh Sahijwani (Querist)
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12 May 2012 Assessee is a company, it has made payment to Tours and Travels company for booking tickets during the year. Total payment is 800,0000 Rs, The service amount is not separately charged by tours n travels company.
Whether assessee has to deduct TDS on such payment u/s 194 C....????

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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12 May 2012 As per Explanation (iv) to Section 194(c)
Work includes carriage of passengers by any mode of transport other than railways.
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To my view, you may exclude railway fare, if included in the bills. However, on railway booking, if any commission has been charged by him , that will be liable for TDS U/s 194H.
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You have to deduct TDS at the prescribed rate of 1% or 2% depending upon the status for IT of the Agent.
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