TDS ON ACCOMODATION CHARGES

[SURYAKANT MITHBAVKAR]

We have accomodate our customer in hotel now we have received hotel bill include accommodation charges with service tax.

Please advice regarding deduction of TDS is on accommodation charges only or including Service tax also.

[Ganeshan Kalyani]

CBDT has clarified that TDS will be deducted on the amount excluding service tax element.

AI Summary

TDS on accommodation charges applies only to the accommodation amount, excluding any service tax component.
TDS on accommodation charges must be computed on the accommodation component alone and not on the service tax element; service tax is excluded from the base for withholding, so payers should segregate invoice amounts when determining TDS.