Makemytrip.com not allowing TDS

Let the privity of the contract be between the individual travelling and make my trip. Company is only reimbursing the cost to the person availing the package even if company pays directly to make my trip. You will be eventually bearing the tax of the employee who is availing the package. If you do not deduct TDS of the employee availing the package, then the reimbursement is disallowed. If Make My Trip is charging a commission to the company then only you deduct TDS on the commission. I do not think you can charge holiday expenses of employee sirectly to your revenue expenditure. It will go as a part of perquisites to the employee.

no u donot need to deduct TDS since such transaction depicts the dealing between the individual for whom  the tickets are booked and the dealing agency,but however u r only a intermediary.

tds wud hv 2 be deducted ... its also perquisite which is taxable in director/employees hands(if the trip is for only pleasure)....make my trip is providing are providing integrated/package services and not only ticketing service...in my opinion whole amt is liable to tds

there may be dissallowance of such expense unless business purpose of such trip is not proved ......make sure that director/employee is entitled to such benefit or it will lead to diversion of funds for personal purposes....

it wud be better ...nt to go for a package.u shud  buy air tickets separately...and also make hotel booking seperately.....that way it wud be tough for a/o to prove the trip is for personal purpose(here burden of proof is on a/o).also no tds to be deducted in this case.

bt this is wrong practice...one shud never use co. funds for personal purpose.....specially if the co. is a public co. there shud be clear distinction b/w personal and business expenditure.

i also think that u should not deduct TDS as there is no contract between u and makemytrip, u are just an intermediary through which some persons are getting their tickets.

Q:- if you deduct the TDS on the same then u will deduct under which section ..... U/s 194C???

 because they are providing package holiday and not only ticket agency service tds shud be deducted u/s 194c

if the co. bought only tickets there 's no question of tds...unless commission exceeds prescribeld limit ....

and there does not need 2 be a written contract....in absence of written contract invoice ats as the contract b/w 2 parties

TDS is to be deducted u/s 192 for the value of perquisites to the employee. You are only reimbursing the cost of the package for a contract BETWEEN individiual and makemytrip.com. There is no contract between you and the makemytrip.com. Your expense will not be allowable if you do not deduct the TDS or bear TDS liability as provided for in the rules and deposit it for the PAN number of your employee.

tds u/s192 will automaticaly be there when when we pay to employee/director

bt when we make pmt to make my pmt to make my trip we will deduct u/s 194c

here the invoice sent by make my trip serves as contract...

and moreover sec 192 does not over rides sec 194...so tds 2 be deducted on both a/c

The ticket is not yet booked. They are booking. They ought to reimburse money to employee who should directly pay to Make My Trip. The company should not pay to make my trip and submit bill to the company. Whether they deduct TDS or not, the amount is disallowed as expense to the company. However, if they reimburse it as part of perquisites to employee it is allowable if TDS u/s 192. Alternately if the company wishes to pay directly to make my trip then they should take PAN Number from them (normally you can derive it from Service Tax Number) and deposit 2.125% tax on grossed up basis + EDU cess and higher EDU Cess. The expense is not allowed but if it is perquisite of employee then expense will be allowed only if TDS is done on Perks is taken as 102.125% of the Make My Trip Bill. Therefore, route it as a reimbursement to employee. Obviously this is situation if Make My Trip does not agree and company bears the TDS from its pocket.

 if tds is paid from own pocket then also then amt is liable to dissallowance

as sec 40a dissallows the following amt

1.amts on which tds is deducted bt nt paid to the credit of the govt.

2.amts on which no tds is deducted

if we pay from own pocket then it falls under point 2 . ao are very strict on foreign travels. if case is taken in scrutiny there may be a problem.

Dear Member,

Looking to privity of contract, I believe that makemytrip belongs to indian company, I understand that your company is require to make payment ot Makemytrip.com for following items;

1) Air Ticket Fares and

2) Travel package charges.

Payment for Air Ticket fare shall not attract section 194C by virtue of 

Clarification regarding applicability of section 194C in case of tickets sold by airlines and travel agents to customers

Further, section 194C, un doubtedly shall apply to payment for traveling pakage as it amount to "work" and so contract of work attract section 194C.

In given case it is clearly stated that company has to pay for this tickets/pakages and so there are no chances to bring it in the light of provision of section 192 at the time of making payment for such expense.

Further, if a person responsible for deduction of tax at source under section 192 fails to deduct tax at source or fails to pay tax at source on the amount of expense i.e. salary including perqs and allowances, then such expenses/part of expenses shall not be dissallowed (refer provision of sectioin 40(ia)

40. Notwithstanding anything to the contrary in sections 30 to ⁶⁷[38], the following amounts shall not be deducted in computing the income chargeable under the head “Profits and gains of business or profession”,—

  (ia)   any interest, commission or brokerage, ⁷⁰[rent, royalty,] fees for professional services or fees for technical services payable to a resident, or amounts payable to a contractor or sub-contractor, being resident, for carrying out any work (including supply of labour for carrying out any work), on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, ⁷¹[has not been paid,—

Regards

Juzer