Question: Is TDS applicable on travel agent?

Is TDS applicable on Travelling charges?

Is TDS deducted on traveling expenses? No, TDS is not deducted on traveling expenses. … Since Service tax is not an income for the service provider, TDS is to be deducted at the total amount excluding the service tax, in case service tax is separately indicated in the invoice.

Is TDS applicable on pure agent services?

TDS may not be applicable to agent: When agent is liable to pay income to any person, he is liable to deduct tax. However, tax may not be deductible due TDS provisions not applicable in his case or in case of payee.

What is TCS tax for travel agents?

Applicable at the rate of 5% on foreign remittances made through Liberalised Remittance Scheme (LRS) of RBI, Tax Collection at Source (TCS) has created apprehension among travel agents.

Is TDS applicable on services?

TDS is to be deducted at the rate of 2 % on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds Rs. 2,50,000.

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Can we deduct TDS on hotel bills?

Circular No.

Answer : Payments made by persons, other individuals and HUFs for hotel accommodation taken on regular basis will be in the nature of rent subject to TDS under section 194-I. Above circular specifies that TDS on payment of Hotel rooms shall be applicable wherein such rooms are taken on regular basis.

What is TDS when it is applicable?

TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest etc. by the persons making such payments. Usually, the person receiving income is liable to pay income tax.

Is GST applicable on reimbursement of Travelling expenses?

As per the provision of GST law, value of supply of services includes ”reimbursement of expenses”. In other words, if any consideration is received as reimbursement from the customer, then GST liability would attract and to be charged on the invoice raised by the service provider.

Can we claim GST on Travelling expenses?

People traveling for business purposes are now requested to submit GST compliant invoices to avail input tax credit benefits under the goods and services (GST) regime. … It is essential you have GST compliant invoice from both the airline and your travel solution provider to claim the input tax credit.

Is TDS applicable on ocean freight charges?

On this, the Principal Commissioner of tax issued a challenging order u/s 263 of Income Tax Act 1961, on the basis which the assesses company has paid the export freight to the Inter Ocean Shipping and Logistic Services without deducting TDS. …

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Is TCS mandatory for international travel?

 In non-PAN/Aadhaar cases the rate shall be ten per cent.  The seller of overseas tour packages has to collect 5% of the total cost (including travel, hotel, local sight-seeing, etc.) …  Residents or Non-Residents, companies or firms, all have to pay TCS on tour packages, if the booking is done from India.

Can we claim travel expenses in TCS?

There is no threshold limit for foreign tour operator to collect TCS and therefore every foreign tour package will be liable for TCS irrespective of the amount involved. It is applicable to every foreign tour package i.e. business tour, family tour, etc.

What is TCS percentage?

) on sale of goods last year where seller was entrusted with the responsibility to collect Income-tax at 0.1% from buyer, subject to certain conditions. … For sale transactions involving motor vehicle, tendu leaves, scrap, etc., TCS continues to apply.