Please Help: TDS
Posted Date : 24-May-2012 , 11:43:57 am | Posted By: Preeti Manglik
Category :
Income Tax | Answers :
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Comments :
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At what rate TDS is to be deducted on Hotel bill which is inclusive of VAT & service Tax? whereas services received by us is not based on regular basis pre booking only for one day |
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Answers:
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 Answer by: Rishabh Upadhyay |
| TDS is not required to be deducted it food was on buffe basis. However it it was a party arrangement that if single bill is given then tds will be deducted on entire amount of bill
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| Answer by: Saurabh Goyal |
| I THINK HOTLE BILL INCLUDES BILL FOR STAY AND FOOD FOR ONE OR TWO DAYS. THIS IS SEEMS IN THE NATURE OF CONTRACT SO TDS IS TO BE DEDUCTED @ OF 2% OF THE REVENUE PORTION EXCLUDING THE AMOUNT OF REIMBERSMENTS OF EXPENSES DONE BY THE HOTLE ON THE BEHALF OF CLIENT.AND IN THIS AM. SERVICE TAX PORTION SHALL BE INCLUDED
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| Answer by: CA. SURESH Kr. AGARWAL |
| The word ‘work’ in s.194C is limited to doing something with a view to achieving the task undertaken or carry out an operation which produces some result. The facilities/amenities made available by a hotel to its customers is not covered under any of the categories specified in the term ‘work’ in Explanation III to section 194C; consequently, the Circular No.681, dated 08-03-1994 to the extent it holds that the services made available by a hotel to its customers are covered u/s 194C must be held to be bad in law.
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| Answer by: CA Satuti Mahajan |
| TDS is not applicable on that.
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| Answer by: Rambabu Senkarasetti |
| No TDS is applicable in this case.
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