Tds-reg
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 June 2012
Sir,
We are in Pharma industry, some people from outside India will come for Audit in our units (Employees & Non employees). we will provide them accommodation in Star hotel and we are paying the same to the Hotel, the hotel bill is for Room rent & food expenses
here my quation is
for this Bill TDS is applicable or Not, if applicable under which section we have to deduct?
We are in Pharma industry, some people from outside India will come for Audit in our units (Employees & Non employees). we will provide them accommodation in Star hotel and we are paying the same to the Hotel, the hotel bill is for Room rent & food expenses
here my quation is
for this Bill TDS is applicable or Not, if applicable under which section we have to deduct?
CA CS Amit S. Kedia
(Expert)
30 June 2012
The CBDT by its circular No.715 dated 8/8/1995 has clarified that the payments made by persons other than individuals and HUF’s for hotel accommodation taken on regular basis will be in the nature of ’rent’ subject to TDS under section 194I of the Act.
However, If the facilities / amenities are not on regular basis and are made available by the hotel to its customers, then they 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
Case law referred-
Writ Petition No. 2104 OF 1994(IN THE HIGH COURT OF BOMBAY)
1.THE EAST INDIA HOTELS LTD
2.JASWANT SINGH BHATIA
Vs.
1.CENTRAL BOARD OF DIRECTOR TAXES
2.UNION OF INDIA
Dated: March 6, 2009
However, If the facilities / amenities are not on regular basis and are made available by the hotel to its customers, then they 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
Case law referred-
Writ Petition No. 2104 OF 1994(IN THE HIGH COURT OF BOMBAY)
1.THE EAST INDIA HOTELS LTD
2.JASWANT SINGH BHATIA
Vs.
1.CENTRAL BOARD OF DIRECTOR TAXES
2.UNION OF INDIA
Dated: March 6, 2009
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