07 July 2012
Please guide me on the applicability of TDS u/s 194C on payment to tour operator for booking of hotel etc for business purpose... I am quite sure that TDS should be deducted but is any legal pronouncement or case law by which i can prove it...Please guide..
07 July 2012
applicable section is 194 C. There is no problem with it. but keep one thing in mind ask him to issuee bill of reimbursement (plaane ticket, Hotel charges) separately and his commission and service charges separately. if he will issue combine bill you will deduct TDS on full amount. if he issue bill separately then you will deduct TDS only on service and commission chareges not on reimbursement.
07 July 2012
Delhi Bench of Income Tax Appellate Tribunal in ITO v Dr. Willmar Schwabe India P Ltd 2005] 3 SOT 71 cleared that if bill are separate then on reimbursement TDS will not be deducted and if bill are combine then TDS will be deducted on full amount
07 July 2012
This case law and circular does not specifically tell about the applicability of TDS on tour operator services..Please help by providing more specific case law or circular on this issue..
CAclubindia
