Tds on tour opeartor

We are a tour operator and another tour operator raised us a bill like this :

Travelling expense delhi to Agra by car :  5000

Guide Expense:   4600

Lanuguage translator :  3000

Enterance fee :  1500

Total :            14100

Service tax @ 3.09%  :  435

Plz suggest me if TDS is deducted on this kind of bill or not

Also if Reverse charge mechanism is applicable or not ?

reply as early as posible.

Replies (10)
deduct tds under 194c on 14100.... reverse charge will be applicable if recepient is a company.

But sir as per my sir opinion they are saying that they come under transporter and hence no TDS will be deducted on it.

In case of reverse charge my offce had a consultancy with AShok Batra the leader in Service tax he said that this is a packaged tour not specificly arenting a cab so no reverse charge

sec 194c clearly mentions that if "transporter of goods" furnishes his pan then no tds to be deducted... so in this case tds prov. will apply.
i am sorry for second part of my answer.. i clearly missed to mention that tour packages are not included under reverse charge.

Even i m of this view sir but i m extremly confused as my office is also saying that TDS will not be deduted as this is also a kind of reimbursement . Plz. i ask others also but i got a mixed reply . some saying this is a reimbursement expense so no TDS and some are saying this is a sun contracted form so TDS will apply.

according to me, it strictly cant be said to be reimbursement...

Reimbursement is an act of compensating someone for an expense. Often, a person is reimbursed for out-of-pocket expenses when the person incurs those expenses through employment or in an account of carrying out the duties for another party or member. (copied from wikipedia)

basic condition of reimbursement is "out of pocket expenses", which is not the case here.... you are availing services of another tour operator.. hence not a case of reimbursement and therefore tds provisions will apply here...

i hope this solves your confusion.

Thank Youu so muchh sir  and now my sir even appreciated for raising such a point and now hw also agree and my client also agees.

Sir i got another query that whether printing of letterheads & brochures without any specific requirements . Paper his only and they asre just normal standard paper --is a contract of sale or contract of service as he charges only vat .

TDS will be deducted on this type of transaction ?

whether this is a works contract ?

yes it is treated as works contract and tds under 194c will be deducted accordingly... only vat will be charged in invoice and no s.tax applicable.

So it means reverse charge will be applicable .

since s.tax is not applicable... then why will reverse charge be applicable.... it wont be applicble divya..

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