What is the TDS rate for hotel accommodation?

TDS rates- the TDS rate 10% in case of 194-I, and 5% for TDS under Section 194-IB.

Is TDS applicable on hotel service?

Answer : Payments made by persons, other individuals and HUFs for hotel accommodation taken on regular basis will be in the nature of rent subject to TDS under section 194-I. Above circular specifies that TDS on payment of Hotel rooms shall be applicable wherein such rooms are taken on regular basis.

How do you calculate 194C?

Rate Of TDS As Per Section 194C

  1. TDS of 1% of the amount will be deducted from any payments or credits made to resident individuals or Hindu Undivided Families (HUFs)
  2. TDS of 2% of the amount will be deducted from any payments or credits made to any party other than resident individuals or Hindu Undivided Families (HUFs)

Is TDS applicable on Travelling expenses?

Is TDS deducted on traveling expenses? No, TDS is not deducted on traveling expenses.

Is TDS applicable on hotel food bill?

TDS on catering services is required to be deducted under Section 194C of Income Tax Act 1961 at the rate of 1% or 2% (as the case may be) for payments to residents.

What is TDS 194C?

Section 194C Explained According to the Section 194C of the Income Tax Act, any individual making a fee to a residential individual, who carries out ‘work’ as a contract between the ‘specified individual’ and the ‘resident contractor,’ is obliged and required to deduct TDS (Tax Deducted At Source).

What comes under 194C?

On which amount TDS is deducted under 194C?

Minimum Amount of Payment for Deduction of TDS under Section 194C. If the payment that is being made to the contractor does not exceed Rs. 30,000, No TDS on payment to contractor is required to be deducted.

What is TCS travel?

Finance Act 2020 has added a new sub-section (1G) in TCS (Tax Collected at Source) under Section 206C of the Income Tax Act, 1961 to collect tax out of foreign remittance transactions under Liberalized Remittance Scheme [LRS] as well as amount received from buyer by a seller for sale of an ‘Overseas Tour Program …

What is covered under 194C?

What is the difference between 194C and 194J?

As per my views section 194C relate to payment to contractors while 194J relate to fee for professional or technical servies. Thus according to section 194C “Technical in nature” means services providing manpower not consultancy. while section 194J relats to consultancy services.