Is TDS applicable on tour operators?


Is TDS applicable for tours and travels?

TDS is not applicable on payments to travel agents for travel tickets.

Can TDS be deducted on travel agent?

In this case of payment to travel agent for booking of airline tickets ,the contract is between individual and airline company though payment is made by the company so tds is not deductible. … hence the No tax should be deducted u/s 194C on payment made to travel agent/airline for booking of tickets.

What is TDS tourism?

The recent Union Budget had proposed that a seller of an overseas tour package should be liable to collect TDS (tax deducted at source) at 5%. … Indian travel agents will now have to pay TDS on a monthly basis and file returns for the same on a quarterly basis.

Is GST applicable for tours and travels?

As per the Schedule of GST Rates for services approved by the GST Council on 19th May 2017, the supply of tour operator services attracts 5% GST rate with no input tax credit.

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Is TDS applicable on hotel booking?

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.

Is TCS mandatory for travel agents?

The first person who sells overseas travel services to traveller (whose PAN is used for LRS) will have to collect and discharge TCS. Every subsequent movement of money in India will be: Invoice value + TCS payment challan (collected and paid by first travel agent).

Is TDS deductible on SMS services?

Due to this reason no tds is deductible on SMS services. Further no TDS is being deducted on telephone , mobile bill payments although service tax is charged on them.

Is TDS applicable on professional fees?

Section 194J – TDS on Professional/Technical Fees. According to the rules and regulations of Section 194J of the Income Tax Act, 1961, a person must deduct their Tax Deducted at Source (TDS) only at the rate of 10% when certain payments are made to a certain resident.

What is the TDS rate for manpower supply?

Thus, the rate of TDS from payments made by the government or other specified persons to any contractor will be 2% or 1% of the gross payment or, as the case may be, the net payment, depending on the terms of the contract. The rate is 1.5% or 0.75% for transactions from 14 May 2020 until 31 March 2021.

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How do you calculate GST on a tour package?

Now, the other Tour Operator shall charge GST at the rate of 5% (i.e. Rs. 125/-). In this case, the entity can take input tax credit of Rs.

GST on Tour Operator Services.

Air fare (Economy class) from Delhi to Kochi and return 47620 GST charged by the Airlines@ 5% 2380 50,000
Hotel Charges 26785 GST charged by Hotel@ 12% 3215 30,000

Can travel agents claim ITC?

Travel agents will be construed as a principal customer for Air India whereby they can take input credit of GST charged by the airline. As a result, agents can raise an invoice to their customers for passenger transport service by air, according to a communication from the airline.