TDS on Hotel Lodging expense

This query is : Resolved 

24 June 2008 Wheather TDS is to be deducted on the amt. of Hotel room charges if the amt. exceeds RS.20000 in single bill or RS.50000 in aggreegate? ASSUME THAT THERE IS NO ANNUAL CONTRACT. Also state the rate at which TDS should be deducted in this case (i.e. 2% or 15%/20%).

thanks
Best Regards
ASHWINI

24 June 2008 Hi Ashwini,

TDS on rent on hotel room charges get attracted if a formal contract is executed.

In absence of the same, TDS would be attracted only if there is a understanding with the hotel that the same room shall be occupied and shall be used frequently during the year.

Rgds/
Vineet


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