Dear All,

We have a proprietor concern organization (Hotel) where we collect a 3% service charge from the guest on the bill and distribute that entire amount among the staff. Now I want to confirm where we have to deduct TDS on the amount paid to employees (who are eligible to pay tax), or are employees solely responsible for paying tax on the service charge amount?

Kindly confirm this with me at .

Warm Regards,
Zaheer
Human Resource

From India, Bhubaneswar
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Being a proprietary concern you are exempt for TDS deduction. However if your accounts gets audited than you have to add this in their salary income and deduct the tax appropriately Poonam
From India, Delhi
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Hi Sudhakar Shetty,

I am working as an HR Executive in a hotel. In our firm, we collect service charges from guests on the bill and distribute the entire amount among the staff. Now, I want to confirm whether we should deduct TDS on the amount paid to employees who are eligible to pay tax (TDS), or if the employees are solely responsible for paying tax on the service charge amount.

Kindly confirm this for me.

Thank you,
Sudhakar Shetty
HR

From India,
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