Tds on hotel bill

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ANKIT SINGLA (Querist)
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21 August 2013 There's a bill of hotel of around 95000/-.
Company has paid the bill for room rent & room service and also company has the contract with the same hotel.
So i want to ask that whether TDS should be deducted on that and if yes, then under which section??

CA UMESH DULAL

CA UMESH DULAL (Expert)
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21 August 2013 Whether TDS on hotel bill will be applicable or not depends upon your contract agreement with the hotel (as you mentioned the you have agreement with the hotel)

so plz specify the type of contract

ANKIT SINGLA

ANKIT SINGLA (Querist)
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22 August 2013 Contract in the sense means that the hotel is used by the company on a regular basis for his business promotion.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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22 August 2013 Now you have to find out whether Hotel is bound by the contract/agreement to give room for company
or it simply a contract/agreement which only fixes the rate for company.

if hotel is bound to give room for company whether the hotel have full booking or not (i.e. the hotel can not deny room and has to be provided at any cost to the company), then tds is deductible

in later case no tds is applicable

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