TDS WHEN PAYMENT MADE TO HOTEL

I dont think TDS provisions will b applicable for the payment made to a hotel. I  have never heard this type of case. but this is my personal view only.

one of the vague  thing here food doesnot attract TDS .But as far as room rent is concerned and if you have a contract with the hotel and the rooms are ear marked for your organisation TDS gets attracted under 194 I provided it crosses the threshold limit of Rs 1,20,000/= p.a

Yes, I Agree with Mr. Sivaram.

Dear Vikas

As no TDS shuld be dedcuted  on payment to hotel . For ur clarification please refer the below mention lines

"payment made for hotel accomodation taken on regular basis is liable to TDS u/s. 194I" Hope ther is no doubts.......

If you make payment to a sigle hotel on regualr basis ie.........say like that you take 10 rooms of hotel on hire & told the hotel management that our company guest always use to come & stay in your hotel & in that case hotel must provide a room to your guest then in that case TDS is laible & dedcution u/s 194I

No TDS will be deducted when payment made to hotel. if u have a contract for rooms then TDS will be deducted at TDS rate for Rent. Generally, companies are deducting tax at TDS rate for contract if the booking is on ad-hoc basis. but in any case threshold limit is applicable.

They always charge service tax @ 10.3% on room rent services, hence deduction in the form of tds is liable , except food and beverages

Dear Vikas,

If we have made Contract with Hotel then TDS should be deducted u/s 194 C but if we are paying to Hotel & don't have any Contract then TDS should be deducted u/s 194 I.

Generally during Audit you will get to see that Company is not deducting TDS on Expenses for Hotel the reason is that Companyu is making Reimbursement to the Employee or Person who have Actually Paid to Hotel, if the Threshold Limit of Rs. 1,20,000 is Crossed then the Employee or Person (who is actually making payment to Hotel) should deduct TDS while making payment to Hotel.

In case of contract also TDS will be deuctable at TDS rate for rent i.e. u/s 194 I. 

Generally, companies are deducting tax at TDS rate for contract if the booking is on ad-hoc basis.

but in any case threshold limit is applicable.