TDS on Accommodation expenses


This query is : Resolved 

Quick Summary
This discussion clarifies whether Tax Deducted at Source (TDS) applies to hotel accommodation booked for a company's annual meet. While individual hotel bills might fall below the threshold, booking through a travel agency changes the scenario. In such cases, TDS at 2% under Section 194C is applicable on the total bill paid to the travel agent.

13 November 2023 Hi Sir,

My company booked hotel rooms for Annual meet of employees. Company booked hotel for accommodation purpose and the tariff includes breakfast and Wi fi charges also.This is not a regular basis as it is for meeting purpose only. Is TDS applicable on payment to hotel? Total Payable amount comes to around 80,000.

14 November 2023 TDS not applicable as threshold is 2,40,000.

14 November 2023 Hi Sir,

Pardon I missed to mention a point. Company have booked the hotel through a travel agency and agency booked accommodation in multiple hotels.

Is TDS applicable if the hotel was booked only for rooms and this was not on a regular basis?

14 November 2023 In such a case deduct 2% under section 194c on total bill of the travel agent.

14 November 2023 Deduct TDS from the agency's bill u/s 194C.


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