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Tax deducted by travel agents from hotel room rent collected

sathya (life time student) (110 Points)

28 December 2016

Can anyone pls help me??????whether there is any requirement to deduct tax from room rent collection by agents from concerned hotels(i.e. agent collects rent from customers on behalf of hotels)??? If yes which section is applicable?

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C.A. Roshan Das (Others) (196 Points)
Replied 28 December 2016

Yes, Since you have mentioned there is agent who is collecting room rent from customer on behalf of Hotels, there may exist principal and agent relation between them and TDS will be deductible u/s 194 H on commission payable to agent for collecting rent on behalf of hotels.

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sathya (life time student) (110 Points)
Replied 29 December 2016

yes 194H is applicable while making payment to agents and the same should be deducted by the hotel.Here the agent deducted tax from payments made to hotel i.e from the income of hotel.i am confusing about it.whether 194I or 194C is applicable for this?????