Tds deduction on hotel bills

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DEEPAK KOCHAR (Querist)
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24 October 2012 Plz tell me,

If a ltd. company pays hotel bills in a very huge amount whether TDS is applicable on it U/S 194 I or 194 C.

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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24 October 2012 Hotel Bill Regarding ?

Suppose There is a Contract/Agreement Between Hotel and Company, Then It will be 194C.

In Other Case Also Generally 194C Applies Even You Pay For Rent of rooms Only.

Because There is Always a Contract Between Hotel n Company, That Any Employee Will Stay in That Hotel Only Like This.

Pls Specify The Reason So That You Can get a Specific Answer.