Tds on payment to hotel bills

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Querist : Anonymous (Querist)
05 February 2014 If a company booked a hotel to do conference with its customer for three days. All facility like catering, food is provided by hotel, then is the company liable to deduct TDS on hotel bill payment. if yes then under which section. plz suggest

05 February 2014 However, where corporate employers, tour operators and travel agents enter into agreements with hotels with a view to merely fix the room tariffs of hotel rooms for their executives/guests/customers. Such agreements, usually entered into for lower tariff rates, are in the nature of rate-contract agreements. There is no obligation on the part of the hotel to provide a room or specified set of rooms. The occupancy in such cases would be occasional or casual. Hence, mere rate contracts would not attract TDS under section 194-I. [Circular No.5/2002 dt.30-7-2002].


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