Is tds u/s 194h applicable for payments to agent?

A company gets tickets booked for its employees through a travel agent. The travel agent charges an amount on each ticket booked as "service fee", which in its agreement is referred to as a "management fee". It also charges Service Tax on this amount. 

Can the amount appearing in the bill as "management fee" be regarded as commission for the purposes of Section 194H, and TDS be deducted accordingly?

PS:

1) I am asking this from the customer point of view, and not airline's.

2) I am asking if TDS is deductible u/s 194H and not 194C, since the Board's view on 194C is very clear.

3) Please provide the source(s) you are referring, if possible.

 

Replies (3)

No TDS was required to be made because payment of commission are made to non-resident overseas agent. As such no income is arising to the non-resident agent in India. So, no TDS is deductible u/s 194H of the Act, which is applicable for resident Indians only, even the provisions of section 195 is not applicable as payments are made to non-resident overseas agents for the services rendered outside India.

The travel agent is an Indian.

TDS is not applicable.

https://www.bcasonline.org/articles/artin.asp?882

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