1.Are we suppose to deduct tds on payment to travel agent on payment made towards abroad trip ( amount 25 lacs). The company has taken its customers under sales promotion scheme.
2. Also are we suppose to deduct tds on payment to resort ( entire resort booked for 2 days - amount 15 lacs ). The company has taken its customers under sales promotion scheme.
Please let me know the tds applicability.
Yes TDS is applicable ...............coz.
1. We have a contract with travel agent for a round trip.
2. We have to deduct TDS for payment made to resort.
I think one point we have to notice that Travel agent and Resort .....place of busineess is in indai or in abroad.........any one can give clear idea about his.....
Sir
1-Travell agent is in india or abroad
2- Resort is in india or abroad
If both are in india , TDS applicable as per U/S 194C.
If both are in abroad, I would like to seek expert's comments.
It may be added that payments to travel agents for purchase of a ticket are not subjected to TDS because the privity of contract is between individual passenger and airlines/travel agent though the company is paying. See circular 715 dated 08-08-1995
Payments to hotels/resorts will not be within TDS provisions unless there is a rate contract or occuapancy is on a regular basis
Regards,
Shaswat initial support private limited
Ahmedabad
CS
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SMJ global advisors pvt ltd
New Delhi
B.Com
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CAclubindia
