TDS on hotel Rooms,

This query is : Resolved

Abhishek Lyall (Querist)
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05 September 2008 Dear Friends,

Payments made for hotel accomodation taken on regular baisi will be in the nature of rent subject to TDS under Sec 194-I,

Where year marked rent rooms are let out for a specific rate and specifed period or where a room or hotel has a legal obligation to provide such types of rooms during the currency of agreement construed to be accomodation made available on regular basis.
Circular No. 5/2002.

My query is :

If hotel is booked by the organisation for some trainings/Confereances, do we need to deduct tds if the room bills are raised in the name of participants but paid by the organisation.or will constued as rate contract agreement accopancy is on ocassional or causal. There is also no legal obligation on the hotel to provide rooms.

Frequency of such trainings are once in two- three months however each payment is more than Rs.120000/-. rooms are occupied for 5 or 6days for on each such occations

CMA Jitendra Singh

CMA Jitendra Singh (Expert)
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05 September 2008 Principally,payment is made for business purpose of organization therefore it is irrelevant that bill raised in name of Participants as yor organization is directly crediting to HOTEL so TDS under 194 I is applicable

If it is rembursement to employees if they paid by themselves than the case may be different,no TDS will be on Hotel

Abhishek Lyall

Abhishek Lyall (Querist)
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05 September 2008 What is considered as casual or ocassional occupancy.