tds on hotels

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Mukesh Kumar (Querist)
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18 March 2009 Hello guys
I have one question which is that
If any employee or Director of our co. stay in hotel for business purpose & pay by Cash/Cheque/credit ot Debit Card then the Tax should be deducted in 194I [ Limit is 120,000.00 ] or 194C [Limit is 20000 for one time or 50000 in a year].
Tell me
Am I right ?

Thanks n regards.
your friend
Mukesh Kumar

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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18 March 2009 if its in regular in nature it will be covered in section 194I except when rate contract agreement is done with the hotel, than it will be covered US 194C.

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CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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18 March 2009 Payments to hotel accommodation taken on regular basis will be in the nature of rent subject to tax deduction u/s 194I if such payment exceeds 120,000 in a year. Section 194I is not applicable in case of rate-contract agreement.

On other cases including rate contract agreements section 194C applies.

Mukesh Kumar

Mukesh Kumar (Querist)
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18 March 2009 thanks guys
bye
take good care of ur
have a great night.

Mukesh Kumar

Mukesh Kumar (Querist)
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06 April 2009 thanks

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