If co. book air tickets from an agency and agency charge fees for this service, then on which amount tds should be deducted?
Whether it should be deducted only on service amount charged by agency or full amount inclusive of air fare?
No need to deduct tds. An airlines agency is an agent of the airlines co. here the relationship of principal and agent exists so any payment made to an agent is deemed to be made to principal. so no tds to be deducted on payments made to airlines agency. For further details and clarification kindly refer section 194C. Hope this will solve all your doubts.
No TDS is to be deducted as it is exempted U/S 194 C.of the Income Tax Act.As
Section 194C does not apply to:-
Payments made to Airlines or Travel Agents for purchase of tickets for air travel of
individuals. (Circular No. 713 dated 2.8.1995