T.d.s on room charges.

This query is : Resolved

Suresh M.Moolya (Querist)
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02 December 2011 We have received one bill from an hotel depicting Room Charges, Service Charges, Luxury Tax, VAT & Service Tax. They have raised a final invoice after taking this details into conideration.

My query is T.D.S @ 10% u/s.194I is applicable only on Room Charges or on Room Charges, Service Charges & Luxury Tax also. Pls clarify in this regard.

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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02 December 2011 The TDS will be deducted on the amount of bill raised by the Hotel, including all taxes levied there.

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Ravi Jhamb

Ravi Jhamb (Expert)
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02 December 2011 As per my concern firstly nature of tds.
If you are regular taking the facility of Guest house then 194-I deducted.
If you took certain days then 194-C

The tds is deducted on Gross Amount

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Suresh M.Moolya

Suresh M.Moolya (Querist)
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03 December 2011 We are not taking the facility of guest house. We have the book the rooms of the hotel on the occasion of employees attending marketing seminar/conference near to that hotel. So are we liable to levy t.d.s on all the aspects of room rates, service tax & luxury tax charged by the hotel? Pls clarify.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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03 December 2011 1. Whether the Aggregate amount Payable to the hotel after Deducting Service Tax there from exceeds 180000/- then only TDS has to be deducted on such amount.
.
On service Tax, TDS is not required to be deducted.
.

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Suresh M.Moolya

Suresh M.Moolya (Querist)
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03 December 2011 THANK YOU ONCE AGAIN PARASJI,RAVIJI & DEEPAKJI FOR YOUR EXPERT ADVICE.

Ravi Jhamb

Ravi Jhamb (Expert)
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03 December 2011 i am agree with expert. If your payment exceed the prescribe limit 180000 then Tds is applicable.

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