TDS on Guest house Ecp

This query is : Resolved

R.Purna Ch. Achary (Querist)
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10 April 2009 Our company director stays at Guest house
This Goust house is not maint.by our company, but what are lodging & Boarding exp paid by our company. can i deduct TDS ?
If Yes, what Percentage i deduct ?

Loading & Boarding means :- Stay & Accomodations charges, food exp, entertainment exp, use of telephone, lundry etc.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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10 April 2009 If you have a combined contract for the guest house and supply of food and other expenses in one bill without the break up of each item and if you are using the guest house as and when required then 194C will be applicable and 2% tax has to be deducted.

Where you are using the guest house on a monthly basis and where break up is not availble for other expenses then TDS has to be deducted applying the rate of tds on rent - 15%.

Where you have seperate bills for each item ie guest house charges and also other utilities and using the guest house regularly on a monthly basis. For guest house rent - 15% tds and for utilities contract rate 2% tds.

If you have seperate bills and you are not using guest house regularly or as when require you are using and paying for the usage for entire amount contract rate of 2% tds is applicable.