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Tds on tour operator

Nisha Yadav (Accounts exe) (455 Points)

12 June 2013

Dear All,

Please help me i m very frustrated.. only expert reply.

We are running tour operator firm. is tds applicable on this case or not?

I purchase a package frorm other tour operator comapny for my client, now i have deduct 2 % TDS while payment to other operator com.

But they said tds would bot applicable in this case.

Please help me tds applicable or not??

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23 Replies

Ankit (CA, CS) (3064 Points)
Replied 12 June 2013

yes Nisha...TDS will come u/s 194C - Payment to Contractors

Nisha Yadav (Accounts exe) (455 Points)
Replied 12 June 2013

But Other tour comapny is not agree.. they said you have purchase a package from us and sell to your client so in case tds would not applicable.. i m too confuse

Nirmit Choraria (CA Final) (1333 Points)
Replied 12 June 2013

one of our clients is also running a tour opreator business

but TDS is not applicable on such transcation as this is PURCHASE & SALE transaction for a tour opreator.

So TDS is not applicable as it is the core business.

TDS is is applicable on Business Expense like advertisement, rent, salary etc

Nisha Yadav (Accounts exe) (455 Points)
Replied 12 June 2013

Thanku so much..

Can you provide any case or detials regarding this matter. Than how to made entry regardsing this .

Nisha Yadav (Accounts exe) (455 Points)
Replied 12 June 2013

They gave me a bill

Tour package -amount Rs 48000/- ( may be service tax 3.09 % alredy inculd in it)

Nisha Yadav (Accounts exe) (455 Points)
Replied 12 June 2013

Dear Ramsai t is tour package and tour package not attract vat its attract Service tax..

1 Like

Nisha Yadav (Accounts exe) (455 Points)
Replied 12 June 2013

expert sir/ mam where are you ? please anybody help me ?

Praveen K. Sharma (Asstt Manager - Accounts) (302 Points)
Replied 12 June 2013

Yes,

I am agree with Ramsai,

if you have received bill of VAT - No TDS (Purchase)

if you have received bill of CST - No TDS (Purchase)

if you have received bill of Service Tax or with out any tax - Depend on nature of Payment

if you have received bill of Service Tax on 25% of Ass.value - service Tax to be deposited by service receiver on 75% of ass. value

Regards,

Praveen Sharma

Nisha Yadav (Accounts exe) (455 Points)
Replied 12 June 2013

dear parveen please first read query carefully then reply.

Nisha Yadav (Accounts exe) (455 Points)
Replied 12 June 2013

koi to help kar do

CA. Amit Khandelwal (Article) (78 Points)
Replied 12 June 2013

Dear Nisha,

there is no other confusion about TDS ....tds will be deduct @ 2 %

and when serivce tax include in bill its more conclusive evidence that tds will be deduct

and this thing doesnt effect on any provision whether your firm purchase tour for self purpose or for your client.

Nisha Yadav (Accounts exe) (455 Points)
Replied 12 June 2013

thanks CA amit sir

same thing i had convey to that company but his CA told me that we have 500 clients n no one deducted tds in this case.. its sale and purchase of tour..

But i didnt agree with him..

Now what to do .. how to shortout this issue..

Nirmit Choraria (CA Final) (1333 Points)
Replied 13 June 2013

@ CA Amit Sir

How can there be liability of deducation on Purchase sale of Tour Operation. As this is my core business activity.

And other thing we even get booking related calls from very known traveling websites like Makemytrip & yatra

and when business with them in lacs and they dont deduct our TDS as its an Purchase and Sale Activity for both of us.

We cahrge Service Tax as we are liable to pay Service tax on sales done.

Ganeshbabu K (Audit and Tax Advisory) (48559 Points)
Replied 13 June 2013

Please do refer Circular 715 dated 08.08.1995..provided here for your reference

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, notwithstand ing 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 deduc tion at source under section 194C of the Act.

Thanks & regards

Ganeshbabu k