TDS on luxury tax and service charges U/S 194I

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Hi friends i got a problem. my company booked rooms for staff for certain period. The hotel charged amount, on bill it shows as tariff-15000  service tax-1545 service charges-750 total 17295. On some of the bills there is a luxury tax also.. now on what amount TDS to be deducted. whether service tax, service charges and luxury tax to be included while deducting the TAX. The total bills for the year exceeds tax limit of Rs.180000. Please clarify ASAP.

Replies (9)

SINCE YOU HAVE TO DEDUCT TDS ON GROSS AMT OF BILL 17295 ,SINCE YOUR TOTAL LIMIT INCRAESE RS 180000 FOR RENT UNDER SEC 194I

 

YOU HAVE TO DEDUCT TDS ON HOTAL BILL

SINCE YOU HAVE TO DEDUCT TDS ON GROSS AMT OF BILL 17295 ,SINCE YOUR TOTAL LIMIT INCRAESE Rs. 180000 FOR RENT UNDER SEC 194I

 

YOU HAVE TO DEDUCT TDS ON HOTAL BILL

 

 

Thanks for your response..

I heard that one circular has came that U/s 194I while deducting TDS Service Tax should not be considered....
 

incidental hotel bookings does not invite TDS

if the bookings are of regular nature and payable on periodical basis then only TDS provisions apply

if we book a hotel room(s) and pay on leaving the hotel then its not a regular nature of service, and here TDS is not applicable

 

Yes Mr. sharma what you said is correct. Our company book rooms regularly from that hotel for the accomodation of guests...

if rooms are taken on regular basis and payment is made on later dates after use of service, then TDS applicable on gross amount ( TDS provisions does not look in annexed taxes but gross money paid)

I agree with U S Sharma Comments, but As per the Circular issued by CBDT (circular no.4/2008 dated 28.04.2008) TDS is not to be deducted on th amount of service tax in case of renting of immovable property.

So as per circular (mentioned by satyendra) service tax is not included while calculating TDS then what about luxury tax... is it part of room rent or excludable while calculating TDS ?

can anyone clarify please...........

Thanks all for your support.


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