TDS on hotel charges

TDS / TCS 1703 views 6 replies

Dear Members,

would like to check if TDS is applicable on hotel charges paid directly by the employer on behalf of employee.

points to be noted:

1. the employer has a contracted rate with the Hotel.

2. the invoice mentions that the invoice is inclusive of room charges & others (dry cleaning, internet etc.)

3. is there any threshold limit to be considered?

Prompt response shall be highly apprceiated.

Thanks!

Replies (6)

 

No need to deduct tds on hotel charges but If there is a contract than you have to  deduct tds u/s194c threshold limit is 1,80,000/- 

as per act, payments made to hotel by persons other then indi/huf, for hotel or accommodation taken on regular basis will be in the nature of rent subject to tax ded u/s 194 I i.e @ 10% limit upto 1,80,000, so in your case must ded tax @ 10%

sorry its section 194I

Thanks for your help.

If rooms are not specified then i think TDS is applicable u/s 194C, because it is a composite service or other word you can say set of sevices i.e. for room, for using hotel projector, for food, etc.)

 

Hi,

1)I just want to know do we need to deduct tds for hotel bill amounting to Rs. 24,800.

As this hotel will be used on regular basis and this is our first bill


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