In an hotel business make my trip provide booking service to the hotels, as the full amount recd by the make my trip only so they are give back to the hotel after deducting there commission on the same.
As TDS will be applicable on the commission amount ??
As hotel book revenue on net amount so in account there is no commission entry is there.
Tds on commission is applicable if Commission is more than 5000 Rs. in a financial year.
u/s 194 H TDS is applicable on commission/brokerage payment to Agent exceeds 5000.As per circular no 619,dated 4.12.1991 even if the commission/brokerage is direcly received and kept by agent with himself the principal will be resposible for TDS deduction.In your case the Hotel will have to deposit the TDS.
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