23 January 2016
ONE HOTEL GETS CLIENTS THROUGH BOOKING.COM. BOOKING.COM IS REGISTERED IN HONG KONG. THEY DO NOT COLLECT MONEY FROM CLIENTS. CLIENTS COME DIRECT TO THE HOTEL AND MAKE THE PAYMENT AT HOTEL. HOTEL HAS TO PAY COMMISSION ON THE AGREED TARIFF RATE TO BOOKING.COM. WHETHER TDS IS TO BE DEDUCTED ON THE COMMISSION PAYMENT GIVEN TO BOOKING.COM EITHER UNDER SECTION 195 OR 194D OR NO TDS IS TO BE DEDUCTED. BOOKING.COM CLAIMS THAT SINCE THEY DO NOT HAVE A PERMANENT ESTABLISHMENT IN INDIA TDS IS NOT APPLICABLE TO THEM. PLEASE EXPRESS YOUR OPINION IN THIS MATTER