Hi

Please refer the below circular & advise whether we should deduct TDS on Hotel taken for Accomodation for Employees on a regular basis or not????

ircular : No. 5/2002, dated 30-7-2002.
>
> 1. Circular No. 715 dated 8-8-1995 has been issued by the Central
> Board of Direct Taxes to clarify various provisions relating to tax
> deduction at source under various provisions of the Income-tax Act.
> Question No. 20 of the aforesaid Circular related to applicability of
> the provisions of section 194-I of the Income-tax Act in respect of
> payments made to a hotel for rooms. The relevant question and answer is reproduced below :
>
> . . . Q. No. 20 : Whether payments made to a hotel for rooms hired
> during the year would be of the nature of rent?
>
> Ans. : Payments made by persons other than individuals and HUF for
> hotel accommodation taken on regular basis will be in the nature of
> rent subject to TDS under section 194-I. [Emphasis supplied]
>
> In this context, doubts have been raised as to what constitutes hotel
> accommodation taken on regular basis for the purpose.
>
> 2-Furthermore, for purposes of section 194-I, the meaning of rent has
> also been considered. Rent means any payment, by whatever name called,
> under any lease . . . or any other agreement or arrangement for the
> use of any land. . . . [Emphasis supplied]. The meaning of rent in
> section 194-I is wide in its ambit and scope. For this reason, payment
> made to hotels for hotel accommodation, whether in the nature of lease
> or licence agreements are covered, so long as such accommodation has
> been taken on regular basis. Where earmarked rooms are let out for a
> specified rate and specified period, they would be construed to be
> accommodation made available on regular basis. Similar would be the
> case, where a room or set of rooms are not earmarked, but the hotel
> has a legal obligation to provide such types of rooms during the currency of the agreement.
>
> 3. However, often, there are instances, where corporate employers,
> tour operators and travel agents enter into agreements with hotels
> with a view to merely fix the room tariffs of hotel rooms for their
> executives/guests/customers. Such agreements, usually entered into for
> lower tariff rates, are in the nature of rate-contract agreements. A
> rate-contract, therefore, may be said to be a contract for providing
> specified types of hotel rooms at pre-determined rates during an
> agreed period. Where an agreement is merely in the nature of a rate
> contract, it cannot be said to be accommodation taken on regular
> basis, as there is no obligation on the part of the hotel to provide a
> room or specified set of rooms. The occupancy in such cases would be
> occasional or casual. In other words, a rate-contract is different for
> this reason from other agreements, where rooms are taken on regular
> basis. Consequently, the provisions of section 194-I while applying to
> hotel accommodation taken on regular basis would not apply to rate contract agreements.
>

Party is refusing on the ground that Hotel has not
> earmarked any particular Room for our company, neither there is any
> obligation on the part of Hotel to provide a room.
>
> This clearly means that TDS liability of company does not arise.
>

Thanks

can some1 tell me diff between super scanners and compilers....
i am a ipcc student..can sm1 tell me which should i buy and which publishrs' super scanners and compilers should i buy..??
thanx in advance

can some1 tell me diff between super scanners and compilers....
i am a ipcc student..can sm1 tell me which should i buy and which publishrs' super scanners and compilers should i buy..??
thanx in advance

A Registered Partnership Firm has a purchase of Rs. 70 lakhs during the financial year 2008 - 2009 which is held in stock as on 31/03/2009. There is no sales at all during the year.

Please advise whether this firm has to get Tax Audit done under Section 44AB for the Assessment Year 2009 - 2010?

How can i get Bonds & Debentures listed in my Company ??

Pl reply !!!

Amit

Dear Sir/Ma'm

I am Vijay Mishra,want to know that if we deal in VAT 4% ,CST 4% & CST 2%, then can we adjust the amount of CST 2% with VAT 4% & CST 4%? Please clarify at the earliest.

Thanks a lot.

Have a nice day.

Under section 54F for claiming exemption on capital gains, the assessee has to invest in new house.
The assessee should not have more than one house at the time of capital gains

Query:
If an assess have a house with ground floor and first floor. one is letout and the other is self occupied. Whether it constitute a single house or two house for the purpose of claiming exemption u/s 54F

Wht is the implication of negative cash balance on any day on the financial statements and as an auditor what should be the recommendation to the client?

What is deferred tax?

Dear Friends,
We have Opened a new Company in F Y 08-09. Up to 31.03.09 the Construction the Plant is going on. Yet any revenue not started. The production also not started. We have incurred the following type of expenditures. Now should we capitalise these expenditures? In which Asset head we have to keep these?

INTEREST & FINANCE CHGS-OTHERS
INTEREST ON FIXED PERIOD LOANS
INTEREST INCOME ON FDR
COMMUNICATION EXPENSES
FREIGHT AND OCTROI OUTWARD
INSURANCE
LEGAL & PROFESSIONAL CONSULTANCY
MISCELLANEOUS EXPENSES
PAYMENT TO AUDITORS
STATIONERY, PRINTING & PHOTOCOPY EXP.
TRAVELLING & CONVEYANCE EXPENSES
STAFF WELFARE