TDS on Payment to Travel Agent

Hi Uttam,

The company that buys the air tickets doesn't have a principal-agent relationship with the travel agent. The travel agent is the agent of the Airlines and not of the customer. The Airlines pays him commission on the volume of tickets he sells and deducts TDS on it u/s 194H. The company is merely a customer, who instead of buying the tickets directly from the Airlines, buys them from the agent, who may also allow some discount on the price of tickets to create an incentive for the travelers to book the tickets through him only. "Handing charges" that the agent is charging seems like a camouflage to inflate the bill for tickets. You're doing a favour to the agent by buying the tickets through him. Charging handling fee makes sense for some agency or a tout that runs company's errands like buying tickets, booking hotels for visitors, etc. The Airline-appointed travel agent didn't have to stand in a queue to buy the tickets! So I don't know what lies beneath the misnomer of Handling Charges.Thanks,CA Sanjeev Bedi--- In ICAI_CIRC_MEERUT_ CA@yahoogroups. com, UTTAM SHARMA wrote:>> Learned Members,> > If a company purchases Air/Train Tickets through a Travel Agent, is the company liable to deduct tax on payment made to Travel Agent u/s 194 C.> > Amount of payment exceeds Rs 20000.> > Travel Agent is charging handling charges on cost of Tickets.> > Pls give your valuable opinion. > > CA Uttam Sharma