Tds in hotel bill

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 September 2013 Dear Sir,

I made a payment of a Hotel :-
Rs. 953000
How many TDS deducted in case of hotel Bill.


02 September 2013 if it was for the purpose of stay on rental basis then no tds as it is within threshold limit u/s 194-I.

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 September 2013 Dear Tushar JI ,

My Co. is organise A Event in this Hotel.

02 September 2013 in any case if udont make a payment of more then 1,80,000 then no tds is tobe deducted as per sec 194-I.

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 September 2013 But this is 9lakhs & 53ooo Rs. Payment

02 September 2013 Ok i am sorry i read it as rs 95,300.
tax is deductible u/s 194-I at the rates mentioned therein.

Error is regreted.

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 September 2013 ok thanks for resolving my problem Tushar Ji,


04 September 2013 It is false suggestion by tushar ji,,let me know on what basis you can deduct TDS under 194I for amount paid for event
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194I can be done only in case when hotel rooms was taken on rent for specified period,,
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So 194I not applicable on this transaction
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More over TDS 194C also not applicable
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In short no TDS applicable on this transaction

04 September 2013 To give exact opinion it is required to know for what 9lakhs amount was paid
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if it is paid for food at hotel,,
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No tds applicable on this payment,,we cannot say this as catering service contract,,because waiters and other staff of hotel are belong to hotel only
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company staff just went to hotel and taken lunch/dinner,,it is simple contract for sale of goods
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serving food to customers was part and parcel of job of hotel staff
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in the same way tds not applicable on any services provided by hotel to its customers
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BUT PLEASE NOTE IF AMOUNT WAS PAID AS A FIXED AGREED AMOUNT TOWARDS MANAGEMENT OF EVENT TDS CAN BE DONE UNDER SECTION 194J


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