tds on hotel room rent

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dileep (Querist)
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12 February 2009 sir,
my cilent got a letter from IT dep that TDS to be deducted on hotel roon rents U/S 194 I.He booked a rooms for his office employees who are from out station.He booked these romms in 5 Star hotels.Whether TDS to be deducted on these rents as gross amount paid by cilent is RS.230000 to hotel personnel.All these payments are paid through cheque.whther TDS to be deducted.If there any notification or circular or rulling regarding TDS to be deducted on hotel rents pls enclose it so that i can show it my cilent.

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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12 February 2009 SECTION 194I COVERS ROOM RENT PAID ON HOTELS ,THEREFORE TDS HAS TO BE DEDUCTED ON SUCH RENT PAID BY THE COMPANY

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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12 February 2009 Yes.
TDS is to be deducted.

K V Subba Rao

K V Subba Rao (Expert)
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12 February 2009 From brief facts given by you, it appears that TDS has to be affected. However there is scope for tax planning. Please check the folloing link

https://economictimes.indiatimes.com/articleshowarchive.cms?msid=21197987

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