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anil lamboria (Querist)
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10 January 2013 If a company made a contract with a hotel to provide accomadation to it's costumer /guest ect. then on such payment, under which sec. tds should be deducted...???
either u/s 194C or 194I .........???

@VaibhavJ

@VaibhavJ (Expert)
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10 January 2013 Hi

If the 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 ‘rent’ as defined under
the Explanation to section 194-I, and would hence attract deduction of tax at
source. - Krishna
Oberoi v. Union of India [2002] 257 ITR 105/123 Taxman 709 (AP.).

The CBDT have clarified that, while section 194-I would be attracted to payments
received for providing hotel accommodation on a regular basis under
lease/licence agreements, the said provision would not apply to cases where
only ‘rate contract’ agreements are entered into, under which only room tariffs
are fixed, because, where an agreement is merely in the nature of a rate
contract, it cannot be said to be accommodation ‘taken on regular basis’

Thanks!!

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anil lamboria

anil lamboria (Querist)
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11 January 2013 Thanks ...!!

IN CASE OF MY COMPANY IT'S A RATE CONTRACT SO
TDS WILL DEDUCT U/S 194C.....

THANKS AGAIN ...

@VaibhavJ

@VaibhavJ (Expert)
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11 January 2013 hey

Yep, for rate contract its 194C, since it also includes cost of other stuffs.

Thanks!!

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