Tds on air ticket booked through agent

Section 194H

Are u sure? Also any relevant part of the section in support of the same.

Thanks in advance

Refer Circular No 713 dated 02.08.1995

“It is clarified that the provision of section 194C does not apply to the payment made to the airline or the travel agents for purchase of tickets for air travel of individual. The provision shall, however, apply when payment are made for chartering an aircraft for carriage of passenger or goods.”

But according to many experts, If transaction are done on regular basis and volume of transaction are very high then it is advisable to deduct TDS u/s 194C even if no written contract is made. As 194C apply to written as well as oral contract.   

So it If your client  is individual or HUF and he is under audit u/s 44AB then it is advisable to deduct TDS u/s 194C and stay tension free.