TDS on Commission and Supplementary Commission received by travel agents

It was held that tax should be deducted at source under Section 1 94H on amount available to agents being difference between airfare fixed by Airlines and price at which agents are enabled to sell tickets

Around the World Travels & Tours Pvt. Ltd. vs. UOI (141 Taxman 53) (Mad.)

• Held that supplementary commissions retained by the travel agents over and above the net fare made over to Airlines is liable to tax deduction at source under Section 194H as commission and interest under Section 201(1A) is leviable in case of default
• Air tickets sold by airlines company to the travel agent “ATA concessional rate” held to be a sale transaction on principal to principal basis, does not amount to commission, not liable to TDS

CIT vs. Singapore Airlines Ltd. & Other airlines (22 DTR 129) (Del.) (2009)

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