Your question: Is TDS applicable on tour operators?


Who is exempt from deducting TDS?

The TDS rate has to be taken as per the relevant section provided in the Income Tax Act, 1961. TDS is exempted in the following 2 cases: If the receiver gives a self-declaration saying that he had made the required investments in FORM 15G/15H or. There is a certificate of exemption given by the Assessing Officer.

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.

Where is all TDS applicable?

Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such specified payment. But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited.

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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.

What is the TDS rate on contractor?

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.

What is TDS limit for contractors?

TDS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22)

Section Nature of payment Threshold Limit
194B Winning from lotteries 10000
194BB Winning from Horse race 10000
194C Contractor-Single transaction-Individual/HUF -Others 30000
194C Contractor – Consolidated Payment During the F.Y. – Individual/HUF – Others 100000

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.

What is TDS tax with example?

Let us take an example of TDS assuming the nature of payment is professional fees on which the specified rate is 10%. XYZ Ltd makes a payment of Rs 50,000/- towards professional fees to Mr. ABC, then XYZ Ltd shall deduct a tax of Rs 5,000/- and make a net payment of Rs 45,000/- (50,000/- deducted by Rs 5,000/-) to Mr.

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Is TDS applicable on supply items?

The specified individuals are required to deduct TDS if the total value of supply under a particular contract for the supply of taxable goods or services or both, exceeds Rs. 2,50,000. This value shall exclude Central tax, State tax, UT tax, Integrated tax and Cess.

Who is eligible for TDS?

The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.

What if TDS is not deducted?

Penalty for companies for not depositing or not deducting TDS on time. The employer can make the interest payment on such late payment of TDS before filing TDS returns or demand raised by TRACES. Also, the interest paid delay while depositing TDS is not allowed as an expense under the income tax provisions.

How can deduct TDS on contractor with example?

TDS is required to be deducted @1% on the whole amount as the total payment in the year exceeds Rs 75,000. Example 2 – In the above example if the contractor A is a Partnership Firm in place of individual. TDS is required to be deducted @ 3% as the sum exceeds the threshold limit of Rs 30,000 in single payment.

What is TDS on professional services?

Section 194J TDS on Professional or Technical Fees

Nature of payment Threshold limit Rate of tax
Fees for professional services Rs. 30,000 10%
Fees for technical services and payment to call centers Rs. 30,000 2% (for FTS- 10% upto FY 19-20)
Remuneration or fees to Director (other than 192) NIL 10%
Royalty Rs. 30,000 10%
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Is TDS applicable on garden services?

Time of deducting TDS on maintenance charges

TDS on maintenance charges is required to be deducted under Section 194C of Income Tax Act 1961 at the rate of 1% or 2% (as the case may be) for payments to residents.