6/July/2012 For general use of all, below is our article on :- "TDS on below services used for functions / Celebrations etc."
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
|
Disclaimer –
Above is prima facie view only. We have assumed deductor is not an Individual/HUF
Regards,
Mr.Kunjan Shah, www.CAnaresh.com |