19 May 2008
What should be the rate of TDS on payment made to hotel for the following services received by pvt.ltd.co. for the business purpose....
Room charges rs. 6,00,000/- Conference hall charges rs. 40,000/- DJ Music charges rs. 10,000/- Transport charges(Hire) rs. 65,000/- Equipment charges Mike,Screen rs. 20,000/- Extra charges during stay rs. 1,80,000/- TOTAL AMT. = Rs. 9,15,000/- for which hotel has raised single bill.
However Friquency of such instances are minimal & further there is no contract with the hotel. Company has received such services continuously for 4 days.
19 May 2008
please refer to a same query on this site by Sanjeev Kumar Varshney on 07/07/2007.
Payments made by persons other than individuals and HUF for hotel accommodation taken on regular basis will be in the nature of rent subject to TDS under section 194-I. (circular 5/2002)
i think your case does not fall ubder "regular basis". So, TDS should apply under section 194C on total payment to hotel. contract need not be in written. it was a verbal contract (or understanding) between you and hotel to use its services and now payment is over rs. 20,000, so TDS is applicable under 194C.
CAclubindia
