TDS on payment to Hotels

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This query is : Resolved

Sivaraman A R (Querist)

05 January 2010 One of my clients an AOP is accomodating artists in hotels.They conduct monthly programmes related to culture(Dance, songs, Drama etc). They call various artists and accomodate them in hotels and the bill will be in the name of my client and bill will be paid by my client.

Is my client liable to deduct TDS under section 194C while making payments to Hotels.

Can they rely on the decision taken in the case " The East India Hotels Ltd. &
Jaswant Singh Bhatia Versus CBDT and UOI " on 06.05.2009 by Bombay high court and not deduct any TDS.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

05 January 2010 Since they conduct monthly programmes regulary, section 194c will be attracted and they need to deduct tax at source. Court judgement will be based on various facts and yours should match exactly with that. Therefore do not completely take guidance of that case.

Bimal Thacker

Bimal Thacker (Expert)

06 January 2010 Why Section 194 C and not 194 I

CA Apurav Agawal

CA Apurav Agawal (Expert)

06 January 2010 TDS should be deducted u/s 194I. If under a regular contract as to fixed charge for room than also u/s 194I.

CA Apurav Agawal

CA Apurav Agawal (Expert)

06 January 2010 TDS should be deducted u/s 194I. If under a regular contract as to fixed charge for room than also u/s 194I. Since 194I is a specific section and 194C is a general section, then we should go by specific rather than general section.

CA Apurav Agawal

CA Apurav Agawal (Expert)

06 January 2010 TDS should be deducted u/s 194I. If under a regular contract as to fixed charge for room than also u/s 194I.
Since 194I is a specific section and 194C is a general section, then we should go by specific rather than general section.

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