Tds on banquet hall

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.

Is there any specific caselaw regarding the same, as according to me 194 I and 194 C could be a debateable point.

Thanks

Updated position (2015 replies are outdated on thresholds):

• Hall hire: Sec 194I(b) at 10% (land or building rent). From 1 April 2025 the threshold is Rs 50,000 per month or part of a month. A single-day hire above Rs 50,000 therefore attracts TDS.

• Catering or dinner: Sec 194C at 1%/2%. Threshold Rs 30,000 per bill or Rs 1 lakh a year.

• Composite package bill (hall + food + décor) from a hotel: if not split, most deductors apply 194C to the whole bill, treating it as an event contract. Ask the hotel to bill separately to avoid a mismatch with the hotel's TDS claim.

• GST: hall rental with catering is a composite supply. Inside "specified premises" (hotel tariff above Rs 7,500) it is 18% with ITC; otherwise 5% without ITC for outdoor or event catering.

• ITC on food and catering for events organised for clients by an event management company is not blocked if it is billed onward as part of an output supply (Sec 17(5)(b)(i) proviso).