Section 194I - TDS on Rent

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Nikhil Dureja (Querist)
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13 February 2010 do banquet hall facality provided by hotel attracts Section 194I (TDS on rent) ?

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nikhil

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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13 February 2010 My.view if you are taking rent one regular basis it is attract 194I otherwise No

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Nikhil Dureja

Nikhil Dureja (Querist)
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17 February 2010 more explanation needed...??

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 February 2010 Where the assessee-hotel received payments from corporate customers under an agreement for use of the rooms in the hotel by such customers on regular basis, such payments would squarely fall within the term â€˜rentâ€™ as defined under the Explanation to section 194-I, and would hence attract deduction of tax at source. If such deduction results in any hardship or financial burden to the assessee, the proper remedy is to apply to the Assessing Officer under section 197 for the issue of certificate for deduction at lower rate or nil rate - Krishna Oberoi v. Union of India [2002] 257 ITR 105/123 Taxman 709 (AP.).

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