Applicability of TDS

[SURYAKANT MITHBAVKAR]

We have received bill for hotel accomodation for our customer visit.

While making payment it is necessary to deduct TDS , If yes under which category and how much percentage.

[Ganeshan Kalyani]

194C @ 1% for individual, HUF and 2% for others.

[DR.MARIAPPAN GOVINDARAJAN]

Yes. I endorse Shri Ganeshan.

AI Summary

TDS on hotel accommodation should be deducted under contract payment provisions, with lower rates for individual/HUF payees and higher rates for other payees.
Payments for hotel accommodation billed in relation to a customer visit are to be treated as contract-related service payments and subject to TDS under section 194C, with lower withholding for individual and HUF payees and higher withholding for other payees.