9/15/2023 0 Comments Conference hall rent![]() ![]() Similar would be the case, where a room or set of rooms are not earmarked, but the hotel has a legal obligation to provide such types of rooms during the currency of the agreement. Where earmarked rooms are let out for a specified rate and specified period, they would be construed to be accommodation made available on ‘regular basis’. For this reason, payment made to hotels for hotel accommodation, whether in the nature of lease or licence agreements are covered, so long as such accommodation has been taken on ‘regular basis’. The meaning of ‘rent’ in section 194-I is wide in its ambit and scope. or any other agreement or arrangement for the use of any land.”. “‘Rent’ means any payment, by whatever name called, under any lease. Where an employee or an individual representing a company (like a consultant, auditor, etc.) makes a payment for hotel accommodation directly to the hotel as and when he stays there, the question of tax deduction at source would not normally arise (except where he is covered under section 44AB as mentioned above) since it is the employee or such individual who makes the payment and the company merely reimburses the expenditure.įurthermore, for purposes of section 194-I, the meaning of ‘rent’ has also been considered. First, it needs to be emphasised that the provisions of section 194-I do not normally cover any payment for rent made by an individual or HUF except in cases where the total sales, gross receipts or turnover from business and profession carried on by the individual or HUF exceed the monetary limits specified under clause (a) or clause (b) of section 44AB. Relevant text of same is reproduced below. To clarify more, department has issued another circular after seven years for only above question.
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