Tds on space booking for exhibition & participation fee

This query is : Resolved

Quick Summary

Stall space booking attracts TDS under section 194I as rent. Participation or conference fees generally do not attract TDS if no specific contract for services exists. Nature of payment determines applicability.

Vijay Kumar

Vijay Kumar (Querist)
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15 January 2014 Dear Experts,

I have received a bill from exhibition company for the following charges.

1) Booking space for stall - Rs. 400000/-
2) Participation Fees for
Conference - Rs. 300000/-

Add : Service Tax @12.36% - Rs. 86520/-

Total - Rs. 786520/-

I want to know that under what section Tds has to be deducted on this bill.

Do we need to deduct Tds separately for Space Booking and participation fee.

Is space booking attract Tds u/s 194I & Participation Fee attract Tds u/s 194C.

Or the whole amount of this Invoice attract Tds U/s 194C or 194I.

Regards,

Hemant Kumar

Hemant Kumar (Expert)
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16 January 2014 1) The payment of Stall Space is liable to TDS under section 194-I and not under section 194C.

2) No TDS On Participation fees.

Vijay Kumar

Vijay Kumar (Querist)
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16 January 2014 Dear Mr. Hemant

The Second part is for participation as the conference platinum Associate in exhibition.

Will this payment not attract u/s 194c ?

Message likes : 1 times

Hemant Kumar

Hemant Kumar (Expert)
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16 January 2014 When attending a conference,which is not specially organized for payer, and is open to any participant, there is no contract for carrying out any work or for rendering professional or technical services. Therefore, TDS provisions should not apply. However, if a professional or technical person organize conference specially for client to impart eduction and training to clients employees/ associates, then there can be either payment for a 'works contract' or 'fees for professional or technical services' depending on nature of service. Even if some other persons are allowed to participate, that may not change the nature.

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