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TDS on hotel room rent

This query is : Resolved 

01 February 2021 Dear Sir,

A tour operator company lodging their guest in other hotels , and they are paying monthly once to hotel.

now hotel bill approx. 90,000/-. Any TDS will deduct on the hotel charges. ?

02 February 2021 TDS applicable under section 194I 10%.

02 February 2021 But if the agreement between the tour operator company and the hotel is in the nature of 'RATE CONTRACT' no need to deduct tax u/s 194I. Inference :- CBDT Circular 5, dated 30-07-2002.


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