TDS ON RESTAURANT BILL PAYMENT
This query is : Resolved
20 March 2009
HI
AS WE KNOW SEC 194 C IS APPLICABLE TO CONTRACT FOR JOB WORK. SUPPOSE WE ARE HAVING A SINGLE HOTEL FOR THE STAY OF OUR GUESTS & CLIENTS. WHEN WE RECEIVES THE BILLS FROM HOTEL IT HAVE TWO COMPONENTS ONE IS " SALE OF FOOD ' & OTHER IS ' SERVICE CHARGES ". IN THIS ARE WE LIABLE TO DEDUCT TDS IF THE SERVICE CHARGES ALONE DOES NOT EXCEED RS. 50000 IN A YEAR BUT SUM OF BOTH COMPONENTS EXCEEDS THE 50000 RS.
WAITITNG FOR YOUR KIND HELP.
RAM DAS GARG
AS WE KNOW SEC 194 C IS APPLICABLE TO CONTRACT FOR JOB WORK. SUPPOSE WE ARE HAVING A SINGLE HOTEL FOR THE STAY OF OUR GUESTS & CLIENTS. WHEN WE RECEIVES THE BILLS FROM HOTEL IT HAVE TWO COMPONENTS ONE IS " SALE OF FOOD ' & OTHER IS ' SERVICE CHARGES ". IN THIS ARE WE LIABLE TO DEDUCT TDS IF THE SERVICE CHARGES ALONE DOES NOT EXCEED RS. 50000 IN A YEAR BUT SUM OF BOTH COMPONENTS EXCEEDS THE 50000 RS.
WAITITNG FOR YOUR KIND HELP.
RAM DAS GARG
20 March 2009
In a recent case, the apex court has held that Section 194C is not applicable to payment made to Hotels.
However, applicability of Section 194I can not be ruled out.
However, applicability of Section 194I can not be ruled out.
20 March 2009
Section 194I will be applicable for Room rent if the amount exceeds Rs. 120,000 in a year.
For payment made against foods etc. Section 194C will be applicable.
For payment made against foods etc. Section 194C will be applicable.
20 March 2009
Please refer to the following link as well.
https://www.caclubindia.com/forum/messages/2009/3/27914_customer_need_not_deduct_tax_while_paying_for_hotel_services.asp?quote=156785&
https://www.caclubindia.com/forum/messages/2009/3/27914_customer_need_not_deduct_tax_while_paying_for_hotel_services.asp?quote=156785&
21 March 2009
PLS PROVIDE ME THE EXACT REFERENCE OF THE CASE LAW. AND THANKS FOR DOING ME FAVOUR.
RAM DAS GARG
RAM DAS GARG
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