TDS on hotel rent

[Rajeev Khulbe]

Good evening to all my great experts

I have doubt something about TDS on hotel .hare is brief summary

Our company organized a tour for employees.so we hired a hotel . At the time of making payment

Total bill amount was 262000 ( two lakh SIXTY two thousand).

My question is that will company deduct TDS on that amount.

AI Summary

Company Questions TDS Deduction on Hotel Bill; Circular No. 715 and Section 194-I Clarify Applicability A company inquired about the necessity of deducting TDS on a hotel bill of 262,000 incurred during an employee tour. Responses varied, with one expert suggesting TDS is applicable if there is a contract with the hotel, while another disagreed. A detailed explanation referenced Circular No. 715 and Circular No. 5/2002, indicating that TDS applies to hotel accommodations taken on a regular basis, but not to rate-contract agreements where rooms are not regularly reserved. The Delhi High Court case was cited to clarify the applicability of Section 194-I, placing the onus on hotels to determine TDS applicability.