Tds on online payments

924 views 3 replies

pls help me to sort this issue

situation 

payment of some expenses for air travel ticket  through on line transaction 

whether TDS provisions will applicable 

eg fo this situation

company booking ticket throught CLEAR TRIP / YATHRA online air ticket booing 

 

Replies (3)

TDS is not attracted on Travelling Expenses by Air, TDS u/s 194c will be attracted only if plane is chartered.

Hence no TDS in your case

Dear Gaurav ,

Can you please explain more....

CBDT has issued a detailed circular no 715 on tds u/s 194C,194I and 194J dated 8.8.1995 ,In which 34 question has been dealt .In this circular question number 6 relates to payment made to travel agent/airline for booking of tickets .
 
the relevant part of the circular is reproduced here under for your reference
 
"Question 6 : Whether payment under a contract for carriage of goods or passengers by any mode of transport would include payment made to a travel agent for purchase of a ticket or payment made to a clearing and forwarding agent for carriage of goods ?
 
Answer : 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 provision 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 of the Act. As regards payments made to clearing and forwarding agent for carriage of goods, the same shall be subjected to tax deduction at source under section 194C of the Act.
 
hence the No tax should be deducted u/s 194C on payment made to travel agent/airline for booking of tickets.This rule is also applicable on other transport medium like rail booking also.

 

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