Tds deduction
This query is : Resolved
28 December 2016
Hi. my client is real eatate businessmen. and he organize a seminar and programme also. my question is that tds attract on food expenses. whole year payment is 4 lakh?. of one person tds on contract is applicable or not
28 December 2016
Yes if you give contract for food supply tds will applicable u/s 194C
28 December 2016
ok thanx. and is it also applicable on hotel staying in one hotel of the whole year?
27 July 2025
Hey! About your question:
* **TDS on food expenses** paid to a caterer or food supplier will attract TDS under **Section 194C** (contract payments) if the amount crosses the threshold (usually Rs. 30,000 per contract or Rs. 75,000 annually).
* So if your client **contracts a caterer or food supplier** for the seminar/programme, and total payments exceed the threshold, yes TDS applies.
---
**Regarding hotel stay expenses:**
* **TDS is generally *not* deductible on hotel room rent paid to hotels unless the rent exceeds Rs. 2,40,000 per annum per hotel**, and then it comes under **Section 194-I** (rent).
* For other hotel expenses like food, banquet, or event services, if treated as supply of service or contract, TDS may apply under **Section 194C** or **194J** depending on nature of payment.
---
### So in summary:
* Food supply contracts → TDS under 194C if thresholds met.
* Hotel room rent → TDS under 194I only if rent > Rs. 2.4 lakh per annum.
* Other hotel services (banquets, events) → Possibly TDS under 194C/194J depending on contract.
* **TDS on food expenses** paid to a caterer or food supplier will attract TDS under **Section 194C** (contract payments) if the amount crosses the threshold (usually Rs. 30,000 per contract or Rs. 75,000 annually).
* So if your client **contracts a caterer or food supplier** for the seminar/programme, and total payments exceed the threshold, yes TDS applies.
---
**Regarding hotel stay expenses:**
* **TDS is generally *not* deductible on hotel room rent paid to hotels unless the rent exceeds Rs. 2,40,000 per annum per hotel**, and then it comes under **Section 194-I** (rent).
* For other hotel expenses like food, banquet, or event services, if treated as supply of service or contract, TDS may apply under **Section 194C** or **194J** depending on nature of payment.
---
### So in summary:
* Food supply contracts → TDS under 194C if thresholds met.
* Hotel room rent → TDS under 194I only if rent > Rs. 2.4 lakh per annum.
* Other hotel services (banquets, events) → Possibly TDS under 194C/194J depending on contract.
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