Tds on hotel membership fees

TDS & TCS
1

Hi,

Should a company deduct tds on hotel club membership fees of Rs.1.9 lac?

If so, under which section and at what rate?

Thanks

2

Hello @Ashwin1

If the membership fee is simply for access to hotel facilities (like gym, pool, dining, or stay benefits), it will not be subject to TDS.

If it includes professional services (e.g., managerial, consultancy, or exclusive club privileges involving advisory services), it will be covered under Section 194J and TDS will be levied at the rate of 10%.