https://www.taxtmi.com/caselaws?id=449684 Minimum guarantee expense paid under a hotel arrangement was examined for TDS under section 194C of the Income-tax Act. The payment was found to be a compensatory amount linked to shortfall in agreed occupancy benchmarks, not consideration for carrying out any work by the hotels for the assessee. Because the essential requirement of a contract for work was absent, section 194C did not apply and no tax was deductible at source. As a result, the related disallowance under section 40(a)(ia) was deleted in favour of the assessee. en-us Thu, 15 Feb 2024 00:00:00 +0530 Sat, 17 Feb 2024 06:50:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449684 Minimum guarantee expense paid under a hotel arrangement was examined for TDS under section 194C of the Income-tax Act. The payment was found to be a compensatory amount linked to shortfall in agreed occupancy benchmarks, not consideration for carrying out any work by the hotels for the assessee. Because the essential requirement of a contract for work was absent, section 194C did not apply and no tax was deductible at source. As a result, the related disallowance under section 40(a)(ia) was deleted in favour of the assessee. Case-Laws Income Tax Thu, 15 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449684