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Deduction of TDS

Smruti (CA) (183 Points)

07 March 2011

Can a company deduct TDS on payment for Banquet party arranged in a five star hotel. If yes, what is the % of TDS?

Thanks In advance.......

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4 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 07 March 2011

TDS is applicable on Catering u/s 194C threshold limit for single bill is Rs.35000/- or annually RS.75000/- Under contract or U/s for 194I For rent of building if threshold limit crossed to 1,80000/-

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Smruti (CA) (183 Points)
Replied 07 March 2011

but catering is different from banquet party. so what will be the consequence if the party is arranged in a hotel under banquet?

Pankaj Arora (Learner) (3134 Points)
Replied 07 March 2011

Well tds have to deduct u/s 194I on Hire of Building @ 2 %

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SANJAY (CHARTERED ACCOUNTANTS) (943 Points)
Replied 07 March 2011

it will be considered in u/s 194C (i.e. Contract) even if it will be in Catering or Banquet.. And TDS will not be deducted u/s 194I as there was no rent agreement.. There is only a contract to arrange the party.