Tds on hiring banquet hall

Under which section tax will be deducted for hiring of banquet hall. If the bill is like conference charge for 120 pax 700 per person plus DJ charges Rs. 7000 & PPL licence Rs 2000.

Best regards

Replies (3)

The renting of Banquet halls for conducting the Seminars/conferences would fall within the ambit of the definition of the taxable service provided by a Mandap Keeper as such seminars/conferences are considered as official/business functions.

If rental income exceeds 180,000/- pa, then TDS u/s 194-I at 10% will have to be deducted.

The above payments for Banquet hall is likely to come under ambit of 194C. In the above case you are paying charges which may vary based on number of persons attending Banquet hall for each time and further you are not utilizing it for entire time. If you want to conduct a meeting in Banquet hall you need to contact management every time and fix time to conduct, charges based on number of persons attending. So charges for it vary every time. You are going to make a fresh contract every time when you wish to conduct meeting. Waiting for further comments.

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