Rate of deducting TDS

This query is : Resolved

B.B.Aneja

B.B.Aneja (Querist)
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23 January 2009 Can a banking company deduct tds on payment to a hotel?
If so then on what rate & under which section ?
Eagerly waiting for a reply.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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23 January 2009 Pl however note that payments made by persons other than individuals and HuFs for hotel or accommodation taken on regular basis will be in the nature of rent subject to TDS u/s 194I (refer paa 165 2-2 of current Taxmann's Ready Reckoner). @20%++++

CA Amarpal

CA Amarpal (Expert)
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23 January 2009 Dear Aneja,

You have not disclosed the type of payment i.e. for which service the payment is being made.

However, the banking company shall deduct tax if it is covered by any of section under TDS of Income Tax Act.

if for rent then u/s 194I.

amarpal@icai.org

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