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Tds deduction in a combined bill for supply & service

Suresh C. Kurup (manager) (44 Points)

23 September 2014

We have received a hotel bill, which is combined for room charges and food charges and also for various taxes on both.

The total bill amount is Rs. 2.50 lacs, and room charges is Rs. 1.24 Lacs

I would like to know whether:-

- This bill attracts a TDS deduction?

- If yes, whether only on the part of room charges, or on the total bill amount?

Regards/Suresh

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4 Replies

Ankita CWA Final Student (Principle Internal Auditor) (348 Points)
Replied 23 September 2014

Hotel accommodation taken on regular basis 194I and not u/s 194C. Where payments made by persons other than individuals and H.U.F. (not cove hotel accommodation taken on regular basis will be in the red by section 44AB) for nature of rent subject to TDS. [Circular No. 715 dated 8.8.1995 (215 ITR (St) 13 as you said u had taken it on day to day basis than tds is not applicable

Suresh C. Kurup (manager) (44 Points)
Replied 24 September 2014

Dear Ankita, could u please expain it in simple way.

One of our senior executive has gone into a hotel and conducted a dealers meet. They have issued a bill of Rs. 2.45 Lacs, which includes room charges, meals and taxes. Out of the the room charge is Rs. 1.24 Lacs. He has paid the bill by his credit card without deducting any TDS. My question is, as this is a combined bill, and the total amount is Rs.2.45 Lacs, whether it attracts a TDS decution or not.

Thanks

Suresh

Ankita CWA Final Student (Principle Internal Auditor) (348 Points)
Replied 26 September 2014

no tds is applicable only if rent is paid on regular basis or under rent agreement in your case both cause are not applicable so no need to deduct tds