TDS on Payments made for usage of Service Apartments
This query is : Resolved
13 July 2011
In case a company pays an amount to another resident company for one-time usage of Service Apartments, does the transaction attract TDS?
Service Apartments provides both boarding facilities, food and other recreations and the invoice amount is usually inclusive of the above charges.
If the payment had been on regular basis, should 194I be invoked or 194C?
Service Apartments provides both boarding facilities, food and other recreations and the invoice amount is usually inclusive of the above charges.
If the payment had been on regular basis, should 194I be invoked or 194C?
13 July 2011
This is some kind of tricky question;
Yes, you must deduct the TDS if the amount paid/payable is more than limits prescribe.
Firstly you need to see the agreement which defines the rent & scope of the facilities. If the agreement is very silent about the additional facilities like food and other recreations then you must apply 194I section. If agreement has some scope define on food and other recreations then you need to follow the following;
> Deduct TDS on service apartment charges u/s 194I, and
> Deduct TDS on other facilities u/s 194C, provided bill/invoice must cover both the things separately.
If invoice has single amount without separation then then apply 194I on total amount.
Yes, you must deduct the TDS if the amount paid/payable is more than limits prescribe.
Firstly you need to see the agreement which defines the rent & scope of the facilities. If the agreement is very silent about the additional facilities like food and other recreations then you must apply 194I section. If agreement has some scope define on food and other recreations then you need to follow the following;
> Deduct TDS on service apartment charges u/s 194I, and
> Deduct TDS on other facilities u/s 194C, provided bill/invoice must cover both the things separately.
If invoice has single amount without separation then then apply 194I on total amount.
Message likes :
2 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- TODAY INCOME TAX SITE IS NOT WORKING ANY OFFICIAL EXTENSION
- Can we choose not to report losses in ITR3 if they cannot be carried forward?
- ITR 4 and Bank transactions
- IS AUDIT MANDATORY IF COMMISSION INCOME IS MORE THAN 50 LAKH
- HOUSING LOAN ISSUE
- Sec 44ada applicable only or both
- RELATED TO TRIBUNAL APPEAL
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
