Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 October 2011 Our company having a corporate meeting we booking a club for one day the invoice we are receiving from hotel INR 100000/-,the invoice showing cost for foods and music,so under which section we have to deduct TDS or TDS not applicable.Awaiting the replies from experts

Ram Avtar Singh

Ram Avtar Singh (Expert)
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23 October 2011 read by this link
http://www.fhrai.com/Stayorder_TDS.htm

Ram Avtar Singh

Ram Avtar Singh (Expert)
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23 October 2011 If abovementioned payment is made by compnay then such payments are liable to TDS u/s 194I where payment is made only for rent subject to limit of 180000 pa.

and If payment is also made for inter-alia services provided by Hotel then in such case TDS has to be deducted under section 194C.

Bombay high court in the case of East India Hotel Ltd held that payment to hotels for amenties/facilities provided by hotels do not constitute "work" within the meaning of section 194C, hence not liable for TDS. To be on safer side deduct TDS u/s 194C.

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