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TDS on Hotel Bills

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11 May 2010 All employees and staff of a private company was asked to come to a particular hotel. Food, Drinks and Beverages were supplied to all of them by the hotel. The hotel had raised a bill for Rs.30100/- towards above said foods, drinks and beverages.

Please advise whether TDS is to be deducted from such payment

with regards

Muralidharan

11 May 2010 In a recent ruling the apex court has held that supply food etc. by a hotel is not a contract for carrying out any work. No TDS.

11 May 2010 Agreed with shyam. this has been calrified by CBDT in circular no 715 dated 8.8.1995




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