Tds on spa service what section applicable either 94c or 94j

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MAHAVEER CHAND (Querist)
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21 March 2016 Please assess the below case and comment on TDS Liability :-

One of our assessee engaged in providing HOTEL AND RESTAURANT to various CLIENTS in India.
They provide SPA facility also there inside the HOTEL, which is rendered by outside vendor. That vendor raise monthly bill for services provided and charge service tax @ 14.5 %. Though we have contract with the vendor, can we deduct TDS U/s 194 C, instead of 194 J.

Amol S Joglekar

Amol S Joglekar (Expert)
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21 March 2016 For the Hotel, it falls under contract and NOT professional or technical service. TDS to be done u/s 194C. ( A new trend among the accountants is that....make TDS at higher of the two rates. Else ask the concerned person to get the certificate from income tax tax department for lower rate of TDS or no TDS. This is especially possible in buyer's market)

MAHAVEER CHAND

MAHAVEER CHAND (Querist)
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25 March 2016 your reply is correct, as per my opinion
thanks

Amol S Joglekar

Amol S Joglekar (Expert)
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27 March 2016 You are most welcome.

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