Tds

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surabhi (Querist)
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13 September 2011 If a company pays an amount of Rs 2 lacs to a hotel for picnic of its employees which is a composite one that is it includes overnite stay, food and sports. Does it need to deduct tds? If yes under what section and wat r the limits and rates?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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13 September 2011 TDS is not required to be deducted in the given case.

CA Navin Jain

CA Navin Jain (Expert)
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13 September 2011 payments made for hotel accommodation, taken on regular basis the nature of rent subject to tds under section 194 I.

In your case hotel accommodation is not taken on regular basis hence no need to deduct tds.

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