If company pays to 5 star hotel for 100 persons lunch expenses, is TDS applicable? (Hotel Bill is Basic + Service Tax + VAT)
5 Replies
Deepesh Jain
(C.A (May 11 Batch))
(104 Points)
Replied 06 March 2010
tds is not applicable in this case as it sale of goods(though not in a proper sence)
shushantsinghal
(BCOM(HONS),C.A)
(283 Points)
Replied 07 March 2010
YES...
INTHIS CASE UR TDS LIABILITY ARISE......CONTRACT 2% ONLY IF BILL EXCEEDING 20000
krishanmehta
(student)
(21 Points)
Replied 07 March 2010
NO NEED TO DEDUCT TDS BECOZ WILL BE DEDUCTED ON CONTRACT
(Guest)
| Originally posted by : djtauraus | ||
 |
tds is not applicable in this case as it sale of goods(though not in a proper sence) |
 |
dear djtauraus tds is also deducted on saleable goods , for hotel it is sale but for us it is not purchase it is our expense and above 20000/- itds should be deducted if i am wrong plz correct me
Sanket Damodar Karve
(Business)
(179 Points)
Replied 08 March 2010
Dear Deepak,
The transaction is in the nature of contract and tax has to be deducted u/s 194 of IT Act. @ 2%
Single bill @ Rs.20000 or more & for the year it is @ Rs.50000 & above then only TDS comes in a picture.
Regards
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