Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
14 October 2011Friends/Seniors
Often the assessee company has to pay hotel expenses to hotels when Directors from other city come and stay in connection with official purposes.
Does payment to hotels attract TDS under section 194C ?
Regards,
CA. Saurabh Garg
(Chartered Accountant)
(41 Points)
Replied 14 October 2011
Dear Friend
Any payment made to the Hotel by the company does not fall in the definition of 194C which uses the word “any work” if the company does not enter into any sort of contract.
However if the company enter into special contract with the Hotel to avail speacail discount rate then it will fall in the definition of Rent under section 194 I. On thing is important that their should should clear sign that company is occupaying room on rent that will be on permanent basis not casual basis.
Hence there is no need to deduct TDS on payment made to Hotel in normal circumstances.
You may contact me on cagarg.saurabh @ gmail.com
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