Hey guys,
Whether TDS is liable to be deducted on payments made to OYO, where:
1. Payment has been made through company bank A/c
2. Payments during the year have crossed 4 lakhs
3. Same hotel has been booked throughout the year through OYO app
Thanks
Yes, u/s. 194C
As per our analysis, though the payment is made to OYO, invoice is issued by the hotel itself.
As it is in the nature of renting immovable property, TDS to be deducted u/s 194I?
Yes,
As per Circular No. 715 dated 8.8.1995 (215 ITR (St) 13 ...... Where payments made by persons other than individuals and H.U.F. (not covered by section 44AB) for hotel accommodation taken on regular basis will be in the nature of rent subject to TDS.
Hi,
As per my understanding, even though you are booking from OYO app or routed through some other party, Invoice will be under company name and as you mentioned payment is also through company account on continuous basis. This is obvious that comes under 194 I of income tax Act.
If you are paying rent to hotel on continuous basis and it exceeds treshold limit, it has to subject to TDS u/s 194I keeping aside the nomenclature..
Refer Notification of IT Dept. I've copied synopsis for you Below ::
Payments made by persons, other individuals and HUFs for hotel accommodation taken on regular basis will be in the nature of rent subject to TDS under section 194-I.
Thanks
CAclubindia
