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TDS Regarding

This query is : Resolved 

13 November 2008 A firm incurred travelling expenses of managing partner for business purpose. The expenses amounted to Rs.2lakhs. The work of ticket booking, booking of hotel and others related to this travel was entrusted to a travel agency and they where given the above said amt. in installments. so the question here is whether TDS is attracted when payment is made to the travel agency and under what section if it attracts TDS

13 November 2008 Service tax is applicable on the value of service charged by the travel agent. TDS is not applicable, subject to your clarifying that they do not charge any thing that attrcts sections 194H or 194J.

17 November 2008 Transactions exempted from TDS u/s 194C:

Circular No 713/dt 02.08.1995

Payments made to Airlines or Travel Agents for purchase of tickets for air travel of individuals.


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