SC stays move to levy TDS on hotel room tariffs

In a breather to the hotel industry, the Supreme Court stayed the income tax department's move to levy 10% tax on room tariffs, treating them as 'rent'. Federation Of Hotel & Restaurant Associations Of India had challenged the Delhi HC judgment on the ground that Section 194-I deals with TDS with respect to payments of rent and does not apply to the hotel industry since the charges for a room in a hotel is not 'rent' in terms of explanation of the provision.