Tds deduction on payment to hotel & restaurants
This query is : Resolved
28 May 2014
Is TDS deduction applicable on payment to Hotel & restaurants? If event organized by Company.
Guest
Guest
(Expert)
28 May 2014
yes...why not...................
27 July 2025
Hey! About **TDS deduction on payments to hotels and restaurants for events organized by a company**, here’s the scoop:
---
### Is TDS applicable?
* **Yes**, TDS is applicable on payments to hotels and restaurants for services like accommodation, catering, banquet hall rent, etc., when used for business purposes such as organizing events.
---
### Under which section?
* Mostly, **Section 194C (Payment to Contractors/Sub-contractors)** is used **if the payment is for work contract services** like catering, banquet hall rental, or accommodation services related to events.
* In some cases, **Section 194J (Fees for Professional or Technical Services)** might apply if the payment is for professional services (e.g., event management or consultancy).
---
### Key points:
* For **hotel accommodation or catering (services involving supply of food and beverage as part of the contract),** TDS u/s **194C** is generally deducted.
* The **TDS rate** is usually **1% for individual/HUF payees** and **2% for others** on the payment amount (excluding GST).
* If only renting the banquet hall or conference room without supply of goods, TDS under **Section 194I (Rent)** might be applicable, but generally for premises used for business or profession.
* If GST is charged separately, TDS should be deducted on the **amount excluding GST**.
---
### Summary:
| Payment Type | TDS Section | Remarks |
| ----------------------------------------------------- | ----------- | ----------------------------------------- |
| Catering, food & beverage | 194C | Treated as works contract |
| Hotel accommodation (for event) | 194C | Usually treated as work contract services |
| Banquet hall rent | 194I | If only rent without supply |
| Professional services (event management, consultancy) | 194J | If applicable |
---
### Example:
If your company pays ₹1,00,000 to a hotel for banquet hall + catering, and ₹10,000 as GST separately, TDS should be deducted on ₹1,00,000 (excluding GST) under **Section 194C** at applicable rate.
---
If you want, I can help you draft a simple TDS calculation or give more specific examples. Would that help?
---
### Is TDS applicable?
* **Yes**, TDS is applicable on payments to hotels and restaurants for services like accommodation, catering, banquet hall rent, etc., when used for business purposes such as organizing events.
---
### Under which section?
* Mostly, **Section 194C (Payment to Contractors/Sub-contractors)** is used **if the payment is for work contract services** like catering, banquet hall rental, or accommodation services related to events.
* In some cases, **Section 194J (Fees for Professional or Technical Services)** might apply if the payment is for professional services (e.g., event management or consultancy).
---
### Key points:
* For **hotel accommodation or catering (services involving supply of food and beverage as part of the contract),** TDS u/s **194C** is generally deducted.
* The **TDS rate** is usually **1% for individual/HUF payees** and **2% for others** on the payment amount (excluding GST).
* If only renting the banquet hall or conference room without supply of goods, TDS under **Section 194I (Rent)** might be applicable, but generally for premises used for business or profession.
* If GST is charged separately, TDS should be deducted on the **amount excluding GST**.
---
### Summary:
| Payment Type | TDS Section | Remarks |
| ----------------------------------------------------- | ----------- | ----------------------------------------- |
| Catering, food & beverage | 194C | Treated as works contract |
| Hotel accommodation (for event) | 194C | Usually treated as work contract services |
| Banquet hall rent | 194I | If only rent without supply |
| Professional services (event management, consultancy) | 194J | If applicable |
---
### Example:
If your company pays ₹1,00,000 to a hotel for banquet hall + catering, and ₹10,000 as GST separately, TDS should be deducted on ₹1,00,000 (excluding GST) under **Section 194C** at applicable rate.
---
If you want, I can help you draft a simple TDS calculation or give more specific examples. Would that help?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR9- ITC
- Audit of F and O T/O
- GST 9- Table 8
- REVENUE RECOGNITION AS PER IND AS 115
- RCM on GTA Services
- How to update Transaction data in broker samco account holding after transfer shares KARVY
- Applicablity on tds
- Unable to generate and save json file for updated return
- GST payable under RCM
- WRONGLY UPLOADED 10IF FOR COOPERATIVE SOCIETY
- Related to Rate of Depreciation
- Mismatch of Sales Invoice in GSTR-1
- Query on Mismatch of Sales Invoice in GSTR-1
- Import purchase entry
- Rule 54(1A) for Distributing ITC
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
Trending Online Classes
CAclubindia
