Hi please clarify me what should be the nature of TDS deduction on Guest House expenses if we have a contract with that guest house only for staying of employees.
Pradeep Jain (service) (143 Points)
21 January 2009Hi please clarify me what should be the nature of TDS deduction on Guest House expenses if we have a contract with that guest house only for staying of employees.
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 21 January 2009
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.
B.V.K.Nageswara Rao
(Manager Finance)
(32 Points)
Replied 21 January 2009
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
Pavan Jain S
(Chartered Accountant)
(1575 Points)
Replied 21 January 2009
w.e.f. AY 2009-10, guest house expenses are not chargeable to FBT
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