TDS on Hotel booking

This query is : Resolved

CA.ViVeK M ACA (Querist)
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19 November 2008 Our company is engaged in tour packages.The company was entered in to an agreement with the customer for booking for 150 Room at VG's home stay.The customer is deducting TDS from their payment on the concept of Rent on hotel booking.At the same time the hotel is deducting Tds from their commission.

Does companies booking room with hotel will attract TDS on Rent?

What will be your answer if the customer himself directly booking the room with hotel?

What will be your answer if the company continuously booking the room even if not regularly?

Ravikumar.G

Ravikumar.G (Expert)
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19 November 2008 Read circular no 5/2002:

Rooms taken in hotel on a regular basis, whether a room or set of rooms are earmarked or not, under such contract - Section 19I shall apply.

Agreement merely in the nature of a rate contract - Sec 194I shall not apply.

CA.ViVeK M ACA

CA.ViVeK M ACA (Querist)
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19 November 2008
There is a explanatory provison in 194 I

TDS will attract if the company entered in to the agreement with the hotel for hiring the room?
If the company doesnot enter any agreement with anyone,There exsit continuity even not regularity is TDS for rent will apply.
Is the agreement is a pre requisite for establishing Regularity???

Ravikumar.G

Ravikumar.G (Expert)
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19 November 2008 Thanks for your information. I will just ensure that explanatory note.

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