Student
3986 Points
Joined July 2018
1. There is no clear specific provision in TDS explaining whether subscripttion paid to hotels falls under any category. However, under the given situation, it can be viewed as a contract between members and 5 start hotel for which subscripttion fee is paid.
2. Once the subscripttion fee is paid hotel legally should provide the necessary services under a contract to the member for which the subscripttion fee is paid.
3. Since subscripttion fee is taxable as income in the hands of 5 start hotel, it surely cannot be excluded from TDS ambit. However, nature of subscripttion fee does not fall under any category other than calling it as a contact, thus sec 194C.
4. TDS @ 2% is to be deducted if the payment exceeds Rs. 1 lakhs during the year.
Please correct me if the above solution have an alternative view.