Rate of t.d.s on Business Centre Exps

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Suresh M.Moolya (Querist)
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05 March 2011 We are in receipt of one invoice from a four star hotel, whereby they have charged us for expenses towards refreshments and business centre items i.e.laser pointer, cordless mike & lcd display.
They have also levied service tax charges on it.
May we know is t.d.s is applicable in this type of expenses? If yes, then what is the rate of T.D.S?

Ramalinga H.B

Ramalinga H.B (Expert)
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08 March 2011 Dear Suresh,

As per my opinion tds is not applicable as payment to hotel for refreshments is not covered u/s 194I & 194C. Pls refer the below Judgement) In the case of The East India Hotels Ltd. & Anr. . 223 CTR 133 it was held that facilities / amenities made available by a Hotel to its customers do not constitute “work” within the meaning of s. 194C and consequently, Circular No 681 dt. 8th March, 1994 to the extent it holds that services made available by a hotel to its customers are covered u/s. 194C must be held to be bad in law and is liable to be quashed.