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TDS

10 May 2007

Hi,
Is TDS applicable on a services booked with HOtel for food and banquets. Eg. for a office staff party, if we book a hotel for a party which will include a hall, food and dj system. Would TDS be applicable on such payments?

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5 Replies

Ankit Bhatia (163 Points)
Replied 10 May 2007

I think TDS u/s 194 I for rent will be deducted if payment exceeds exempn lt.

Centre (16 Points)
Replied 10 May 2007

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Ankit Bhatia (163 Points)
Replied 10 May 2007

I think TDS u/s 194 I for rent will be deducted if payment exceeds exempn lt.

Vinesh Garg (31 Points)
Replied 10 May 2007

As per me if a consolidated bill has been raised for all, then Tds u/s 194C would be deducted on whole of the amount. In case individual bills has been raised, then Tds u/s 194C would be deducted on Rent paid for hall & DJ only.

Ankit Bhatia (163 Points)
Replied 10 May 2007

TDS u/s 194C ,as suggested ,doesnt make sense for full bill.To the extent that payment is for rented space(as you said its a party),it will be TDS for rent(see definition of rent u/s 194 I.
TDS u/s 194C is relevant only for catering part -if any.