TDS on Hotel Room Booking

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This discussion clarifies whether Tax Deducted at Source (TDS) is applicable on hotel room bookings made by a company for its directors, key management personnel, and clients. Specifically addressing a case involving Taj Hotel, Mumbai, and transactions totalling Rs 15 Lacs over six months, the consensus is that TDS is indeed required. This applies even in the absence of formal contracts or agreements with the hotel.

Devraj Dhwiti

Devraj Dhwiti (Querist)
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16 October 2023 Dear Sir, This is in regards to the Judgement order for Red chilli entertainment Pvt Ltd and Circular : No. 5/2002, dated 30-7-2002.

If a Company (turnover 100 crores) books Hotel Room for its Directors, KMPs, Clients, etc with Same Hotel TAJ HOTEL, Mumbai. The company has no contracts or no agreement with the Hotel and total transactions from Apr23 till Sep23 is Rs 15 Lacs.

So Whether TDS need to be deducted and paid including interest in these 15 Lacs.