Leena Negi (Management Trainee) (33 Points)
14 December 2013Dear Expert
My Client is a Travel and Tour Agent which also books Hotel rooms for its Clients.
But sometimes it make such bookings through another travelling agents , specially in case of Hotel room booking outside India.
I would like to ask whether TDS will be deducted by Our client while making payment to this tour and traveliing Agent. Please give relevent Section/ notification/ circular.
Thanks in advance.
GAUTAM SHARMA
(Audit Assistant)
(353 Points)
Replied 14 December 2013
first We've to understand what is status of another agent.If His status is Non Resident, then refer Provisions of Sec. 9 "Income Deemed or accrue".If income of NR is liable to be taxed in india, then TDS as per Sec. 195 at prevaling tax rate or 20% as the case may be.
If income is no chargeable to tax, then no TDS
CAclubindia
