15 February 2016
East India Hotels-vs-CBDT 320 ITR 526 (Bom):
The issue before the court was whether services provided by a hotelier would fall within the scope of the said expression. The court answered in negative by observing as under:
“The expression “carrying out any work” in section 194C is limited to any work which on being carried out culminates in to a product result. In other words, the word “work” in section 194C is limited to doing something with a view to achieve the task undertaken or to carry out an operation which produces some result.”
“The services rendered by a hotel to its customers by making available certain facilities/amenities like providing multilingual staff , 24 hour service for reception, telephones, select restaurants, bank counter, beauty saloon, barbar shop, car rental, shopping centre, laundry, health club, business centre services etc do not involve carrying out any work which results into production of the desired object and therefore, would be outside the purview of section 194C of the Act.” do u have any case law ????
16 February 2016
The definition 'work' under section 194C of the Income Tax Act, 1961 is inclusive. Though 'laundry work' not enumerated in the list included in the 'work', the laundry work can be treated as 'work' as contemplated by section 194C and TDS shall be deducted according to that section by the hotel while making payment of the laundry bill or at the time of credit of the bill in the books of account of the hotel, whichever is earlier.
CAclubindia
