TDS on remittance to hotel

[Asked by Guest]

A company is making remittance to hotel for accomodation of guest/owners. Whether this payment is liable for TDS u/s 194C or 194I

[Ram Babu]

Payments made by persons, other than individuals and HUFs for hotal or accommodation taken on regular basis will be in the nature of rent subject to tax deduction u/s 194 I.

AI Summary

TDS on rent: company payments for regular hotel accommodation attract tax deduction as rent under income tax provisions.
Payments by persons other than individuals and HUFs for hotel accommodation taken on a regular basis are treated as rent and are subject to tax deduction at source under u/s 194I rather than as payments for contract services.