TaxTMI 
TaxTMI 
Employee stay in hotel on rent during the travel so TDS will be deducted or not & which section
TDS deduction
03 Feb 2011 
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TDS on rent: regular hotel accommodation payments can attract tax deduction while rate contract bookings are excluded.
Payments for hotel accommodation constitute rent for TDS where accommodation is taken on a regular basis by persons other than individuals and HUFs; earmarked rooms or hotel obligations to provide specified accommodation indicate regularity, while rate contract tariff arrangements for occasional occupancy do not attract rent based TDS. Reimbursements to employees ordinarily do not create a deduction obligation unless turnover/audit thresholds apply. A Bombay High Court decision is noted where TDS on rent was held not deductible in that case. (AI Summary)
Payments for hotel accommodation constitute rent for TDS where accommodation is taken on a regular basis by persons other than individuals and HUFs; earmarked rooms or hotel obligations to provide specified accommodation indicate regularity, while rate contract tariff arrangements for occasional occupancy do not attract rent based TDS. Reimbursements to employees ordinarily do not create a deduction obligation unless turnover/audit thresholds apply. A Bombay High Court decision is noted where TDS on rent was held not deductible in that case. (AI Summary)