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 ....???
CAclubindia
