Tds on hotel bill

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sumitendra (Querist)
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02 November 2012 please let me know whether TDS is applicable at the time of payment to a Hotel by a corporate for the providing accomodation, lunch and Dinner.If yes whatwill be the rate?

Sunny Sonwal

Sunny Sonwal (Expert)
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02 November 2012 TDS would be applicable on some prescribed type of payment under Income Tax Act.

There is no information under TDS sections that TDS would be applicable on payment of Hotel Bill.

But, Yes if you are having a contact, whether in fiscal or not, with the Hotel then you can deduct TDS on that payment under section 194C.

For better understanding you should read section 194C.