Whether payments made to a hotel for rooms hired during the year would be of the nature of rent?

In the case of Krishna Oberio v Union of India [2002], it was decided that where the assessee was running a five-star hotel, and had entered into regular agreements with some corporate customers under which the assessee provided rooms to those customers at a concessional rates

In the case of Krishna Oberio v Union of India [2002], it was decided that where the assessee was running a five-star hotel, and had entered into regular agreements with some corporate customers under which the assessee provided rooms to those customers at a concessional rates, the High Court held that the amounts paid by such customers was to be treated as 'rent' and subjected to deduction of tax at source. In lines with the above decision, the CBDT has clarified that payments made to a hotel for hotel accommodation , whether in the nature of lease or license agreements are covered under section 194-I, so long as such accommodation has been taken on 'regular basis'.

Hie Uma, - Payments made by persons, other individuals and HUFs for hotel accommodation taken on regular basis will be in the nature of rent subject to TDS under section 194-I. Circular: No. 715, dated 8-8-1995.

Payments made by persons, other individuals and HUFs for hotel accommodation taken on regular basis will be in the nature of rent subject to TDS under section 194-I. Circular: No. 715, dated 8-8-1995. Thanks