Type of expense

Our view

Short Reasoning

hotel room rent

No

No tds mainly because

·     This was disputed. On 6/3/2009 in Mumbai High Court in THE EAST INDIA HOTELS LTD on 6-3-2009 it was held that services by hotel are not liable u/s. 194C as its not technically called “work”.

·     Although the following reason is not relevant directly for TDS, but just for logical argument sake, one must also consider that if a hotel is in Maharashtra, it is liable for sale tax as per rule 59 of Mvat rules.

Hotel room rent on regular basis

Yes – u/s. 194I

TDS is applicable mainly because :-

·         If regularly a company takes hotel rooms on rent for its office meetings etc. (not just one time functions), only then it would be liable to TDS u/s. 194I

banquet hall

Yes – u/s. 194I

Tds is applicable mainly because

·         Rent u/s. 194I

catering (other than servicing food in restaurant/café in normal course of business)

Yes – u/s. 194C

TDS is applicable mainly because :-

Exclusive catering service will attract TDS