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TDS on Annual Subscription Received

Others 1101 views 3 replies
A 5 star hotel is receiving annual subscripttion from Corporate & Non- Corporate customers. whether subscriber can deduct TDS on such subscripttion. if yes,then under which section & at what rate.
Replies (3)
yes, In section 194C TDS can be deducted @ 2%

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.

A builder has flat as stock in trade now he wants to gift his flat. how this can be done in his books of accounts & what is the tax treatment


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