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Tds implications on payment made to air travel agents

TDS 1804 views 2 replies

Please clarify whether TDS is required to be deducted on payment made to the air travel agent (company) by a company in respect of its employees & amount consist of reimbusement of air ticket amount & processing fees( like commission) ?

Extract of the invoice is as below

                           Basic Fare  -  7000

                           All Taxes    -   5000

                           Service Tax-  500  ( as per prescribed rate )

                          Processing Fees - 250  ( 2% of Rs 12500 ) 

                           Total Amt Payable to Agent Company - Rs 12750

 

Please tell me whether TDS will be deducted as per Sec 194 H on Processing fee or as per sec 194C on whole amt or none of the provision will apply ....???

 

Replies (2)

If Commission amt is exceeds Rs. 10000 during the financial year then only required to deduct TDS

However Normally all Agent commissions are by Airlines Companies & they need to Deduct TDS, Not by Passanger

Therefore No requirement to deduct TDS 

But here processing fees are also paid by Company ( not airline company ) to agent not by passenger (employee) .

                


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