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

AI Summary

No TDS on Equipment Payments to Doctors or Travel Expenses Without Commission Under Sections 194J and 194C. A medical company inquires about the applicability of Tax Deducted at Source (TDS) on payments made to a doctor for equipment purchased for the doctor's private office, which the company treats as business promotion expenses. Additionally, they question TDS applicability on payments to a travel agent for air tickets and hotel bookings, where no commission is charged. The response clarifies that no TDS is applicable under sections 194J or 194C, as there is no professional service or contract involved, and no commission is paid to the travel agent.