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.

AI Summary

TDS on Hotel Stays: Deduct Only on Accommodation Charges, Exclude Service Tax, Says CBDT. A query was raised regarding the deduction of Tax Deducted at Source (TDS) on hotel accommodation charges, specifically whether TDS should be applied to the total amount including service tax or only on the accommodation charges. The response clarified that, according to the Central Board of Direct Taxes (CBDT), TDS should be deducted only on the accommodation charges, excluding the service tax component.