TDS on hotel payments ?

This query is : Resolved 

14 April 2010 Whether TDS is applicable on payments to hotels for room rent and for food, conference, etc.? If yes, then under which section and at what rate?

14 April 2010 Hi Umeh, it all depend on the arragement / terms of the contract. You can go through circular 786 issued by CBDT.

If same room is regularly booked and if there is understanding that same room will be provided then it will be treated as contract and TDS will be deducted u/s 194 C


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