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Tds on banquet hall

17703 views 2 replies

Abhilash

B.Com

28 Points Posted on 29 June 2015

Dear Sir

I am from a Event Management Company

Last week we have doe a event in which we have hired a Banquet Hall and cocktail dinner for my client.

Please advise me how much TDS should be deducted and can i take the credit input on service tax.

Hotel Total Amount

Replies (2)

Quick Summary

TDS on banquet hall depends on components. Hall rent attracts 194I at 10 percent, while catering falls under 194C at 1 percent or 2 percent. Applicability depends on payment thresholds, and classification may be debatable.

CMA Poornima Madhava

CMA

13117 Points Posted on 29 June 2015

For hiring of banquet halls, 194I is applicable (TDS @ 10%) and for dinner (catering), 194C is applicable [ @ 1% (in case of individuals) or 2% (other than individuals)].

194I: TDS deductible if payments/credit exceed Rs.1.8 lacs in a year

194C: TDS deductibe if single payment/credit exceeds Rs.30k or aggregate payments/credits during the year exceed Rs.75k.