27 July 2025 Hey! About **TDS deduction on payments to hotels and restaurants for events organized by a company**, here’s the scoop:

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### 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.

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### 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).

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### 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**.

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### 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 |

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### 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.

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If you want, I can help you draft a simple TDS calculation or give more specific examples. Would that help?

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