TDS on guest house charges

According to me in the case of Guest house expenses and that is for employees ....FBT should be levied, not the TDS.

Do correct me if im wrong.

If we are hiring the guest house on monthly basis then TDS rate applicable as per Sec 194I i.e @ 15% for indiv/HUF 20% in case of Company/Firm etc.,.  Surcharge & EC applicable as per Act.  If suppose guest house charges paid on the basis of occupancy then TDS deducted under Sec 194C as a contract.

B.V.K.Nageswara Rao

Ph: 099891 57666

Email: nageswararao.bommakanti @ ril.com

w.e.f. AY 2009-10, guest house expenses are not chargeable to FBT