Applicability of tds on travel ticket

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....pplicability of tds on travel ticket<br> Query (Issue) Started By: - velayutham panchatcharam Dated:- 22-11-2009 Last Reply Date:- 30-11-2009 Income Tax<br>Got 4 Replies<br>Income Tax<br>Please clarify with section whether TDS is applicable for travel ticket. If yes, in total bill value or their management fee. Reply By Dinesh Gupta: The Reply: Para 6 of CBDT circular dated 8.8.1995 read as: The ....

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....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, notwithstanding 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 a....

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....ny 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 deduction at source under section 194C of the Act. Reply By Dinesh Gupta: The Reply: hence the No tax should be deducted u/s 194C on payment made to travel agent/airline for booking ....

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....of tickets.This rule is also applicable on other transport medium like rail booking also. Reply By Dinesh Gupta: The Reply: Also see Circular : No. 5/2002, dated 30-7-2002. Reply By DEV KUMAR KOTHARI: The Reply: Full facts and own study should be indicated in query to share and enrich knowledge and experience. Purchase of travel ticket is like purchase of a facility for travel on a particular dat....

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....e on particular route by specified type of vehcles. It is not for transportation of goods or carrying out any work. Therefore section 194C is not applicable. The vehicle is not lese out in such cases, so section 194I will not apply. The matter may fall u/s 195 in case payment is made to a non resident.<br> Discussion Forum - Knowledge Sharing ....