TDS Rate on Hotel Charges

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mint (Querist)
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23 May 2008
Kindly suggest me the TDS Rate for the Charges paid for Hotel the durationfor stay in hotel not more than 3 days. AS per my view TDS should be charges under section 194-I ?

Thanks and Regards

Mint

CA. Vineet Grover

CA. Vineet Grover (Expert)
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23 May 2008 Hi Mint,

TDS is not applicable for hotel payments.

If you enter into a contract or has an understanding that you shall use a particular hotel room for a particular year and the total payment for the year crosses Rs.1.20 lacs then TDS u/s 194I shall apply.

Rgds/
Vineet

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