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TDS ON HOTEL ROOM RENT

bharani (ca) (46 Points)

06 June 2007

if any company book a hotel room rent for its employees, not on contract basis, excees the limits, whether tds should be deducted and under what section

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15 Replies

Rajen (Professional) (122 Points)
Replied 07 June 2007

In this case TDS tobe deducted @ 2% + SC+E.cess+H E Cess. Because there is no such rent agrement.

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vijaymnarwani@gmail.com (18 Points)
Replied 07 June 2007

There is also no contract for booking the room, then how it is to deducted at @ 2% , Then wat about rented car , if someone is travelling & co. is hire car for him , then whether tds is to be deducted or not ? if same pvt company is providing car & raising separate bill , whether limit is to be checked ?

Agraamit (13 Points)
Replied 07 June 2007

Plz refer clarification mentioned in circular No.5/2002. it clarifies TDS on hotel room.

bharani (ca) (46 Points)
Replied 08 June 2007

as per circular 5/2002, if hotel room is occupied on regular basis, then the tds sould be deducted u/s 194I, so if it is not regularly occupied, there is no tds as mentioned by Rajen, how it will come under Contract, is there any case law/decision to support this please refere

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(Guest)

if any company book a hotel room rent for its employees through sub contract , whether tds should be deducted and under what section .

ASHISH JAIN (CA) (52 Points)
Replied 05 July 2008

If Compnay Does not have any contract & is taking room on rent only for visiotr or employees whether it is covered under 194C & liable to deduct TDS if total rent during the year is more then 50000/- because every bill a saperate contract? Please help

(Guest)

if any company book a hotel room for its employees to visit for conference, not on contract basis, excees the limits (bill of Rs.445000/-),whether tds should be deducted and under what section.

Nagaraju Pogula (Partner) (175 Points)
Replied 23 July 2008

However, often, there are instances, where corporate employers, tour operators and travel agents enter into agreements with hotels with a view to merely fix the room tariffs of hotel rooms for their executives/guests/customers. Such agreements, usually entered into for lower tariff rates, are in the nature of rate-contract agreements. A rate-contract, therefore, may be said to be a contract for providing specified types of hotel rooms at pre-determined rates during an agreed period. Where an agreement is merely in the nature of a rate contract, it cannot be said to be accommodation ‘taken on regular basis’, as there is no obligation on the part of the hotel to provide a room or specified set of rooms. The occupancy in such cases would be occasional or casual. In other words, a rate-contract is different for this reason from other agreements, where rooms are taken on regular basis. Consequently, the provisions of section 194-I while applying to hotel accommodation taken on regular basis would not apply to rate contract agreements.

Circular : No. 5/2002, dated 30-7-2002.

Rajesh (Accounts Manager) (46 Points)
Replied 27 September 2008

Good Evening sir

If need informayion about rate contract, like supose if we are paying to any tour operator company for our client for hotelk & transport & for other thing, is it will come u/s 94c or 94 J in TDS or Not.

Please provide me elaborate information on rate contract.

Thanks & Regards

Rajesh Shukla

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Sridhar J (Manager finance) (0 Points)
Replied 08 October 2008

Dear Sir

We have booked a conference room for a meet and the bill amount was Rs. 33000. It includes stay expenses of few top officials and food expenses. Should i have to deduct TDS on the bill????

(Guest)

Originally posted by :bharani
"	if any company book a hotel room rent for its employees, not on contract basis, excees the limits, whether tds should be deducted and under what section	"

freinds (Accountant) (20 Points)
Replied 18 November 2008


"	Plz send me circular No.5/2002 of TDS on hotel room.	"

suresh mishra (partner) (0 Points)
Replied 28 November 2008

Originally posted by :Guest
"	If Compnay Does not have any contract & is taking room on rent only for visiotr or employees whether it is covered under 194C & liable to deduct TDS if total rent during the year is more then 50000/- because every bill a saperate contract? Please help	"