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Tds on hospitality services

3469 views 6 replies

Indrakumar KS

Sr.Accounts /Finance Executive

72 Points Posted on 17 May 2017

We are an manufacturing Unit. We have Provide a training programme to our employees from professionalist. for that we have booked one hotel for training and hospitality purposes. So They have charged Rs.50000/-( For Taining hall. And Lunch Expenses) So whether TDS is is to be deducted for this service or what.

Pl Suggest me sir

Regards

Indrakumar KS

9611219604

9743986186

Replies (6)

sowmya

audit assistant

228 Points Posted on 17 May 2017

better to deduct TDS as per 194I since the case which you have explained purely does not fall under either nature of expense as defined under 194c

Indrakumar KS

Sr.Accounts /Finance Executive

72 Points Posted on 17 May 2017

Madam,

But it not reached 180000/- its a one time payment. Can i go far 194C

Pl suggest

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211711 Points Posted on 17 May 2017

Refer: https://www.taxmanagementindia.com/visitor/detail_rss_feed.asp?ID=13829

rama krishnan

12244 Points Posted on 17 May 2017

as such there's no requirement to deduct TDS as per the provisions. but unfortunately if your case selected for scrutiny and the AO will disallow the aforesaid expenses and you have to get relief only in appeals. so it's better to deduct TDS to avoid all these things

CA Raj Doshi

Practising CA

8954 Points Posted on 18 May 2017

Rama krishnan ji provided proper practical solution. better to deduct at 10% under 194I and get into safe zone.

Sunil Sharma

Practising Advocate

687 Points Posted on 18 May 2017

It is not required to deduct TDS in your case as it is within the limit of 1.8 l and also being a single time payment for the year.
however it would attract 194 I not 194 c..in case exceeds the limit