TDS on Booking Travel ticket and Hotel booking via Make My Trip

1. TDS on service charges: Yes, TDS is applicable on service charges paid to MakeMyTrip. As per Indian tax laws, TDS is applicable on payments made to residents for various services, including travel agent services. Manage TDS on service charges: - Deduct TDS @ 10% (or applicable rate) on the service charges - Pay the balance amount via credit card - Deposit the TDS with the government and obtain a TDS certificate (Form 16A) - Claim the TDS credit while filing your company's tax return

 1. TDS on hotel room rent: Yes, TDS is applicable on hotel room rent paid to residents. TDS @ 10% (or applicable rate) is applicable on payments made for hotel accommodation.

 Manage TDS on hotel room rent: - Deduct TDS @ 10% (or applicable rate) on the hotel room rent - Pay the balance amount via credit card - Deposit the TDS with the government and obtain a TDS certificate (Form 16A) - Claim the TDS credit while filing your company's tax return

To manage TDS on service charges and hotel room rent, consider the following: - Request MakeMyTrip to provide separate invoices for service charges and hotel room rent - 

Deduct TDS on these invoices and pay the balance via credit card - Ensure compliance with TDS regulations and maintain proper documentation 

Consult a chartered accountant or tax professional for guidance on TDS applicability and compliance.

Section 194C of the Income Tax Act, 1961, pertains to the deduction of tax at source (TDS) at a rate of 10% on payments made to contractors and subcontractors.

However, there are various sections under the Income Tax Act, 1961, that mandate TDS at a rate of 10%. Some of these sections include: 

1. Section 192: TDS on salaries

 2. Section 194A: TDS on interest other than interest on securities

3. Section 194C: TDS on payments to contractors and subcontractors 

4. Section 194D: TDS on insurance commission 

5. Section 194G: TDS on commission, etc., on sale of lottery tickets 6. Section 194H: TDS on commission or brokerage 

Please specify the context or type of payment to determine the applicable section for 10% TDS. 

  As per section 194C  of the Income tax act  , Only 1%  for Indivdual  &  2 % For   others are  applicable in case of  payment  to Contrator / sub Contrator , subject  to conditions  , 10% is no where  in the section   194C  of the Income tax act . 

TDS on MakeMyTrip-type bookings splits into two parts depending on what you are paying for.

Airline ticket purchase through OTA: The ticket price itself is not subject to TDS since it is a purchase of an airline service, TDS applies on SERVICE CHARGES (convenience fee, booking fee) charged by the OTA separately.
- Service charges from OTA: TDS under Section 194C at 1% or 2% (individual/company) if the threshold is crossed (Rs 30,000 single payment or Rs 1 lakh aggregate with the same OTA in the FY)

Hotel bookings through OTA:
- Hotel stay payment to a hotel directly: no TDS since you are the guest, not paying rent in a business context
- If booking through an OTA and the hotel invoices you directly: Section 194I (rent) may apply at 10% if aggregate hotel payments to the same property exceed Rs 2,40,000 in the FY, but this usually applies only to long-term corporate contracts, not individual bookings
- OTA service charges on hotel bookings: same as above, 194C on the OTA service charge if threshold crossed

This [TDS threshold reference chart](https://taxgarden.in/blog/tds-threshold-limits-all-sections-194a-194t-quick-reference-chart-fy-2026-27) has the limits for all sections including 194C and 194I at a glance.