Dear Friends,
What about TDS for Boarding & Lodging. Sometimes we are hiring Hotel Rooms for monthly basis. In this case any TDS impact u/s 194I ?
7 Replies
sujith kumar dasa
(banglore)
(1496 Points)
Replied 11 May 2020
Yes TDS is applicable @ 10% under sec 194I if the limit of Rs. 240000 is crossed
CA Garima
(Assistant Manager)
(118 Points)
Replied 11 May 2020
According to my opinion 194I is not applicable in this case since we are not paying for the use of Building i.e payment made is not rental nature. However,we are taking composite service including food, housekeeping etc.
Mohanraj J
(1178 Points)
Replied 11 May 2020
Garima Ji, am also thinking same. we are hiring Boarding n Lodging on need basis only and not for a monthly basis. Some months we are hiring 7 days, sometimes we are hiring 57 days.
Kiran Hathalia
(837 Points)
Replied 11 May 2020
In my view section 194C shall be applicable on boarding and lodging expenses.
Nihit Somani
(110 Points)
Replied 11 May 2020
Where earmarked rooms are let out for a specified rate or period, they would be construed as accommodation made available on regular basis and would be termed as rent. Even if the rooms are not earmarked but hotel has legal obligation to provide such rooms would also be in form of rent.
However, there are few instances where corporate employers etc enter into agreements with hotels just to fix the room tariffs of hotel rooms for their people. Such agreements are in the nature of rate contract agreements. In this case, it cannot be said to be accommodation on regular basis and accordingly TDS under section 194I shall not apply in this case.
Trust this clarifies.
Regards,
Nihit Somani
However, there are few instances where corporate employers etc enter into agreements with hotels just to fix the room tariffs of hotel rooms for their people. Such agreements are in the nature of rate contract agreements. In this case, it cannot be said to be accommodation on regular basis and accordingly TDS under section 194I shall not apply in this case.
Trust this clarifies.
Regards,
Nihit Somani
sabyasachi mukherjee
(27574 Points)
Replied 12 May 2020
THE HOTEL LODGING CHARGES GST ON BASIS OF SLABS AND RATE FIXED...
Recent Topics
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- Where can I find a trusted provider to hire a skip
- GST Invoices Series
- FILING OF ITR AY 20-21
- CLAIMING OF U CLAIMED RCM
- Building construction works
- REGARDING GSTR-9 F.Y 2023-24
- Rectification to decrease income in SCHEDULE OS
Related Threads
CAclubindia
