Tds applicable on accomodation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2011 Hi

We have an accomodation services for employees who went to bangalore from our hyd office and the payment is done by the company. Please let me know whether the accomodation comes under contract 2% or we have to deduct 10% as rent.

Please share some of the cases if any...

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2011 Dear Expert,

Could you please look into my query, its little bit urgent.

appreciate if you can reply to the above query asap.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 July 2011 what is exact nature of payment, whether it is rent for space or just service accommodation which pay only for services

if it is nature of rent for space -194I -10%
if it is nature of service - 194C rates based on the payee status

Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2011 Thanks a lot Ramesh.

The accomodation is with a Hotel and whenever any employee went to bangalore, the rooms were booked.

We have advised by our auditor that if it is above 170000 threshold limit then only you have to deduct tax.

Please confirm.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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07 August 2011 yes. then deduct u/s.194I, as per auditor advice wait for crossing threshold limit,. but if you expect amount will increase beyond the limit, better you start deduct, otherwise party will affect the deduction for all in single payment

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2011 Thanks a lot Ramesh.

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