TDS ON HOTEL STAY CHARFES INCLUDING FOOD AND OTHER SERVICES

Dear Alok,

If abovementioned payment is made by compnay then such payments are liable to TDS u/s 194I where payment is made only for rent subject to limit of 180000 pa.

and If payment is also made for inter-alia services provided by Hotel then in such case TDS has to be deducted under section 194C.

Bombay high court in the case of East India Hotel Ltd held that payment to hotels for amenties/facilities provided by hotels do not constitute "work" within the meaning of section 194C, hence not liable for TDS. To be on safer side deduct TDS u/s 194C.

Regards

Hitesh

Thanx Hitesh,

But they has raised a consolidate bill  then we need to seggegate it.