TDS Deduction Tour and Travel agent

This discussion clarifies whether TDS (Tax Deducted at Source) is applicable when a payment of Rs. 2 Lac is made to a tour and travel agent for airline tickets by an individual or partnership firm. The consensus is that if the payment is specifically for air tickets and represents a reimbursement collected from the customer, then TDS deduction is not required. This exemption applies when the agent is essentially passing on the cost of the ticket.