Deduction of TDS

[avnish gupta]

1.If a Medical company makes a payment to  doctor for bill raised against purchase of equipment for his personal office i.e doctor private office and company  claimed that such doctor will provide us customer for our product. And treat as Business Promotion expenses, whether  such payment liable for TDS or not. 

2. A Company makes a payment to travel agent for booking Air Ticket & Hotel, but on such bill there is no commission charged by agent, on how much amount TDs will be deductible.

Air Ticket                Rs.10,000 Bill attached.

Hotel cost              Rs.12,000   Bill not attached.

Total                       Rs.22,000

Add Service Tax   Rs. 2266

Total                       Rs. 24,266

[malhar shenoy]

As there is no Professional Service received and there is also no contract, NO TDS u/s 194J194C will be attracted.

Also No TDS is applicable to payment made to Travel agent  as there is no contract / Commision paid to him.

AI Summary

TDS applicability on business promotion payments and travel bookings: absent where no professional service, contract, or commission exists. TDS is not attracted on payments to the doctor or to the travel agent because no professional service, contractual engagement, or commission exists; accordingly provisions under 194J and 194C do not apply, and inclusion of service tax on travel invoices does not alter the absence of TDS liability.