Alok Kumar (Practicing C.A.) (56 Points)
17 August 2010dEAR aLL,
Please let me know the provision abount TDS provisions on hotel stay charges and please advice that TDS is required to be deducted when bill contains rent , food and beverages etc?
Hitesh Kothari
(Chartered Accountant M.No. - 134239)
(326 Points)
Replied 17 August 2010
Dear Alok,
If abovementioned payment is made by compnay then such payments are liable to TDS u/s 194I where payment is made only for rent subject to limit of 180000 pa.
and If payment is also made for inter-alia services provided by Hotel then in such case TDS has to be deducted under section 194C.
Bombay high court in the case of East India Hotel Ltd held that payment to hotels for amenties/facilities provided by hotels do not constitute "work" within the meaning of section 194C, hence not liable for TDS. To be on safer side deduct TDS u/s 194C.
Regards
Hitesh
Alok Kumar
(Practicing C.A.)
(56 Points)
Replied 17 August 2010
Thanx Hitesh,
But they has raised a consolidate bill then we need to seggegate it.
CAclubindia
