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

TDS 2809 views 4 replies

Arman Khan

1 Points Joined November 2024

Respected Sir/Madam,

1. Our company books travel tickets and hotel stays through a corporate account with MakeMyTrip, which includes a separate line item for service charges on each invoice. Is TDS applicable on these service charges? If so, how can we manage this, as we are required to pay the full amount upfront via credit card?

2. Is TDS applicable on the hotel room rent ?

Replies (4)

Rama chary Rachakonda

Master in Accounts & high court Advocate

8991 Points Joined December 2011

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.

prasad Nilugal

GST Practitioner & Accounts

14941 Points Joined March 2014

@ Rama Chary Rachakonda Sir

Under which section of the Income tax 1961 , 10 % TDS applicable ? as per your reply.

Rama chary Rachakonda

Master in Accounts & high court Advocate

8991 Points Joined December 2011

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.

prasad Nilugal

GST Practitioner & Accounts

14941 Points Joined March 2014

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 .