tds on air travel agency form as travel partner

TDS 1093 views 3 replies

As our company is a Event management Company we r organising an event  for which we have sponsered a travel agent as our travel Partner  and  all work related travel by air done through the agent  while making payment  as travelling  expenses to the agent should we deduct  TDS us/194C as aggregate payment of exceeds Rs 1,00,000/- to the same agent.

Replies (3)

Payments to airlines/travel agents - The provisions of section 194C do not apply to the payments made to the airlines or the travel agents for purchase of tickets for air travel of individuals. The provisions shall however apply when payments are made for chartering an aircraft for carriage of passengers or goods. This clarification will apply mutatis mutan­dis to the tickets for travel of individual by any other mode of transport also—Circular : No. 713, dated 2-8-1995.

The payments made to a travel agent or an airline for purchase of a ticket for travel would not be subjected to tax deduction at source as the privity of the contract is between the individual passenger and the airline/travel agent, notwithstanding the fact that the payment is made by an entity mentioned in section 194C(1). The provisions of section 194C shall however apply when a plane or a bus or any other mode of transport is chartered by one of the entities mentioned in section 194C—Circular : No. 715, dated 8-8-1995.

Dear Sir,

Sir, Whether TDS is applicable on Fright charges incurred on exporting goods to foreign countries through foreign air travel (eg; Quatar Airways etc)? Please Help me 

 

 

Dear Sir,

Sir, Whether TDS is applicable on Fright charges incurred on exporting goods to foreign countries through foreign air travel (eg; Quatar Airways etc)? Please Help me 

 

 


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