Tax Deduct at Source

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Abhishek Shah

Abhishek Shah (Querist)
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23 June 2008 Whether TDS to be deducted on payment by a company to Hotel above Rs.20000

Shekar

Shekar (Expert)
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23 June 2008 Yes...if the nature of payment is falling under of perview TDS provision...If the company has made contract(oral or written) with the hotel for regular catering service...then TDS has to be deducted u/s 194C..

Azmathullah Khan

Azmathullah Khan (Expert)
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23 June 2008 TDS to be paid on service provided by the hotel, but not on item sent.

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Pranesh

Pranesh (Expert)
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23 June 2008 TDS is to be deducted only on the service provided by the hotel. For any item supplied say food stuffs catered by hotel we need not deduct TDS.

Azmathullah Khan

Azmathullah Khan (Expert)
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26 June 2008 Mr. Abhishek

Please give details of payment to hotel, whether it is room rent or caterring service.

If there is any contract with the hotel management the TDS u/s. 194C applicable,

or using the same room every time or the room rent for the same room exceed taxable rent then TDS u/s. 194I is applicable.

Otherwise No need to deduct any TDS for hotel rooms or my suggestion is not to deduct TDS on room rent for hotel.

Pls confirm my queries.