Tds on meeting & conference at hotel

This query is : Resolved

Rajesh (Querist)
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28 December 2014 I HAVE A BILL FROM A HOTEL SHREYA INN IN WHICH HE CLAIMED STAY EXPENSE OF TWO EMPLOYEE RS 8000/- THEN AN OTHER BILL FOR TEA & SNACKS FOR DAY 1 AND DAY 2 AMOUNT RS 16800 FOR EACH FOR SERVING 22 PERSON EACH DAY. WHAT IS THE TDS LIABILITY?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 December 2014 No TDS applicable.
It has been decided as follows in the case Bombay high court.

The High Court held that the facilities / amenities made available by the petitioner No.1 hotel to its customers do not constitute ’work’ within the meaning of section 194C of the Act. Consequently, the circular No.681 dated 8/3/1994 to the extent it holds that the services made available by a hotel to its customers are covered under section 194C of the Act must be held to be bad in law.
So the petition is allowed by quashing the circular No.681 dated 8/3/1994 to the extent it holds that section 194C of the Income Tax Act applies to payments by the customers to the petitioner No.1 hotel for availing the facilities / amenities made available by the petitioners.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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28 December 2014 There is no TDS liability as the amount of Stay Expenses as well as the catering expenses are below the prescribed threshold limits for a single transaction of Rs 30000/-.
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https://www.caclubindia.com/articles/issues-relating-to-tds-on-hotel-accommodation-expenditure-14111.asp#.VJ_YP8LYEA

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