Charges paid to hotel for stay will attract TDS u/s 194C or 194I? What are the provisions please explain asap.
Dimple Kotak (Accounts & Tax ) (185 Points)
24 May 2012Charges paid to hotel for stay will attract TDS u/s 194C or 194I? What are the provisions please explain asap.
Roshan Thomas
(C.E.O )
(356 Points)
Replied 24 May 2012
TDS is not deductible under194C for payment of hotel bill - because 194C covers only payment for "Works Contract" or "Contract for supply of labour" . Advertising, broadcasting, telecasting, carriage of goods and passengers and catering have been specifically included.
Whereas 194I is concerned - if the hotel room is taken on a permanent basis then TDS has to be deducted, otherwise no deduction
Roshan Thomas
(C.E.O )
(356 Points)
Replied 24 May 2012
Dear PRITAM JAINe h
As per your link - the order of the High court was to quash the CBDT circular as it was bad it law. Held that 194C is not applicable
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