Dinner party and 194Q

This query is : Resolved

Quick Summary

Discussion on TDS applicability for a banquet hall dinner bill paid to a hotel. Experts clarified that the payment is generally treated as catering/service and not purchase of goods under Section 194Q, with possible TDS implications under Section 194C depending on the arrangement.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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27 January 2026 We are paying bunquet hall dinner party bill to 3 star hotel, amount of Rs. 80 Lac.
Can this dinner bill is treated as commodity & is attract TDS u/s 194 Q.
Please guide

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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28 January 2026 The dinner bill of ₹80 Lakh should not be treated as a purchase of goods under Section 194Q. Instead, you should deduct TDS under Section 194C at the rate of 2% (assuming the hotel is a corporate entity), as it is classified as a catering/works contract service.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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28 January 2026 But sir, most of the opinion is taking foods in hotel, not attracted tds 194 C, if we are placing catering contract in our premises or any other we selected premises, then attract Tds 194 C.
This situation is we give only food lunch order for definate No. Of person.

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