Tax deducted at source

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Rakesh Kumar Singh

Rakesh Kumar Singh (Querist)

22 September 2007 Whether TDS would be deducted in payment of Hotel bill(Room rent) exceeding 20,000.00.

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)

22 September 2007 Yeah,
Y not

AjeshkumarM.P

AjeshkumarM.P (Expert)

22 September 2007 Yes you must

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)

19 November 2007 Your kind attention is drawn on question no. 20 (given below) in the Cicular No. 715 dated:08/08/1995:

Question 20 : Whether payments made to a hotel for rooms hired during the year would be of the nature of rent ?
Answer: Payments made by persons other than individuals and HUFs for hotel accommodation taken on regular basis will be in the nature of rent subject to TDS under section 194-I.
(here the phrase " persons other than individuals and HUF' is to be raed in present position of the section)

Ravikumar.G

Ravikumar.G (Expert)

24 September 2008 ooms taken in hotel on a regular basis, whether a room or set of rooms are earmarked or not, under such contract - Sec 194I shall apply.
Agreement merely in the nature of a rate contract- Sec 194I shall not apply.

Ravikumar.G

Ravikumar.G (Expert)

24 September 2008 refer circular no 5 / 2002.