Is it require to deduct TDS u/s.194I on payment of rent to Hotel when exceeds Rs.120000/-? We are not reguraly occupying rooms but occassionally booked.
05 February 2009
As per CBDT's circular No 5/2002 dt 30.7.2002 where corporate employers , tour operators and travel agents signs agreement with hotels only for the rate and under the said agreements, hotels have no obligation to provide a room or specified numbers of room, the occupancy in such case shall not fall with in the scope of section 194I of the I T Act