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Tds on travel agent

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This query is : Resolved

Yash jagati (Querist)
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26 February 2016

Recently, our company has appointed a travel agent for booking of all the hotel stay requirement of company's employee, when they go out of city for office work. Agent raises a invoice on a monthly basis for all the booking done by him. However in his invoices, he doesn't show his service charges separately.
For 1st & 2nd invoice, we have deducted TDS @ 194C on whole amount of invoice. Is this correct approach?

Please tell me tds will be attracted for such payment & under which section?

Trinadharao Adigarla

Trinadharao Adigarla (Expert)
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26 February 2016 Normally Invoice is Claim Hotel Actual Bills +Service Charges that is Correct Accounting.
Ask Ur Travel Agent Divide Actual bills of Hotel Booking (Keep Attachment of Hotel bills)+Service Charges.
TDS is Deduct on Full Amount of Bill .

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