Is TDS applicable on membership fees paid to Hotels? for example, Company A pays memership fees Rs.100000 plus service tax @ 10.3% (Total Rs.110300/-) for the FY 2011-12. Is TDS applicable on this payment? If yes, at what rate and which section?
Pl answer.
Thanking you
The same attracts to TDS deduction @ 10%
If membership fee paid is refundable in nature, then TDS provisions does not attract & no question of disallowance u/s 40a(ia) also.
If the membership fees is non refundable in nature then the TDS rates will be applicable as mentioned below.
If the hotel belongs to Other than Individual/HUF then TDS rates will be 2% if hotel belongs to Individual/HUF then tds rates will be 1%.
Membership to Hotel is neither professional fee nor commission in nature, hence tds will be under section 194C.
If anyone thinks I am wrong please correct me
Dear Sir / Madam,
My company is paying the membership feet to ACMA (Automotive Components Mfg Association of India) about 1 lakhs and Service tax, the totalling of Rs. 1,12,360/-
Request you to advice me, whether it is attract to TDS at 10% falls under professional services or not ?
Regards,
Simhachalam SR
M N Rao & Associates LLP
Vijayawada
CA Inter
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Abic and Mani Chartered Accountants
Kottayam
B.Com
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CCI
Pro
CAclubindia
