Tds on commission paid to railway ticket agent


Our company gets the ticket arranged from a railway ticket agent for travelling of our employees. Agent charges some amount in addition to railway ticket charges and issues the bill showing separately railway ticket charges and his commission. Whether TDS is applicable on this transaction under section 194C or 194H. If yes, on full value or only on commission part.?




Yes, TDS is liable to be deducted on payment made towards ticket booking u/s194H  @ 10%, if the commission exceeds Rs. 5000/-. It is to be deducted on the amount of service charged by the agent and not on the railway ticket.

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