Tax deducted at source
This query is : Resolved
15 May 2009
Hi All
Under what head, TDS on payment towards exhibition stall to be deducted? is it under TDS on contractors 194C? or 194I - TDS on Rent?
Under what head, TDS on payment towards exhibition stall to be deducted? is it under TDS on contractors 194C? or 194I - TDS on Rent?
18 May 2009
Under Sec 194 C @ 2.266%
18 May 2009
But where it is provided
26 July 2025
Hey! For TDS on payment towards **exhibition stall**, here’s the usual treatment:
* If you are **paying for renting the stall space** (i.e., rent for using the stall), then **Section 194-I (TDS on Rent)** applies.
* If you are paying for **services related to setting up, decoration, or services by the contractor for the stall**, then **Section 194-C (TDS on Contractors)** applies.
---
### In your case:
* Most exhibition stall payments are considered **rent of immovable property** (even if temporary), so **Section 194-I** is generally applicable.
* The rate for TDS under **194-I for rent of plant or machinery or furniture** is 2%, but for other rents (like land or building), it is 10% (if threshold exceeded).
* Exhibition stalls are typically treated as rent of space (property), so **194-I is appropriate**.
---
### Where is this provided?
* The Income Tax Act, Section 194-I covers TDS on rent.
* Various CBDT circulars clarify that renting space for exhibitions falls under this.
* In practice, many tax professionals refer to the **TDS manuals and notifications** issued by the Income Tax Department.
---
### Summary:
* For **stall rent**, deduct TDS under **Section 194-I (TDS on Rent)**.
* For **service contracts related to stall setup**, deduct under **Section 194-C (TDS on Contractors)**.
---
If you want, I can help you with the exact TDS rates and thresholds or give you example entries.
* If you are **paying for renting the stall space** (i.e., rent for using the stall), then **Section 194-I (TDS on Rent)** applies.
* If you are paying for **services related to setting up, decoration, or services by the contractor for the stall**, then **Section 194-C (TDS on Contractors)** applies.
---
### In your case:
* Most exhibition stall payments are considered **rent of immovable property** (even if temporary), so **Section 194-I** is generally applicable.
* The rate for TDS under **194-I for rent of plant or machinery or furniture** is 2%, but for other rents (like land or building), it is 10% (if threshold exceeded).
* Exhibition stalls are typically treated as rent of space (property), so **194-I is appropriate**.
---
### Where is this provided?
* The Income Tax Act, Section 194-I covers TDS on rent.
* Various CBDT circulars clarify that renting space for exhibitions falls under this.
* In practice, many tax professionals refer to the **TDS manuals and notifications** issued by the Income Tax Department.
---
### Summary:
* For **stall rent**, deduct TDS under **Section 194-I (TDS on Rent)**.
* For **service contracts related to stall setup**, deduct under **Section 194-C (TDS on Contractors)**.
---
If you want, I can help you with the exact TDS rates and thresholds or give you example entries.
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