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Applicability of section 195 for air travel agents

TDS 309 views 2 replies

Dear Sir/Madam,

Our's is an air travel agency where we purchase and sell tickets. we operate in a B2B environment. our suppliers are spread across the world. I have two questions here:

  1. Is the amount paid to my supplier from whome I purchase tickets liable for TDS u/s 195?
  2. Do I have to obtain Tax Residency Certificate, Form 10F and no PE declaration from my suppliers?

Please let me know if you need any additional inputs to answer my question.

Thanks

Sandeep

 

Replies (2)
1. sec 195 covers day to day business operations by a resident with non resident , so the rates will apply
2.10 F should be there for DTAA(double taxation avoidance agreement)
Thanks sreekar, but is this not similar to import of goods where tds is not deducted if you are dealing on a principal to principal basis?


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