Applicability of TDS

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CPA Partha Sengupta (Querist)
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29 January 2009 Hi all,

Kindly resolve the following query:

Suppose my company has entered into an agreement/contract with XYZ group. XYZ group has 7 hotels in all over India. As per the agreement, if any staff of my company stays in any of the above hotels then Bill for the same is to be raised by XYZ Group on my company. Therefore, my company has to pay charges incurred by staffs during their stay in hotels. Kindly note that booking of rooms are not on regular basis. Requirement of room is on need basis. In this connection, I have following questions.
1. Should I deduct TDS?
2. Whether TDS on Rent will be applicable?
3. Whether TDS on Contractor/Sub-contractor is applicable?

Thanks in advance.

Hiral Raja

Hiral Raja (Expert)
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30 January 2009 - I feel TDS should not be deducted.

- TDS on rent is not applicable since rooms are not taken on regular basis.

- No TDS under the head contractor/subcontractor.

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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01 February 2009 TDS to be deducted under rent head

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