GST & Banquet Billing

TDS on Banquet Hall Rent: Section 194-I vs 194-C for Corporate Event Bookings (2026)

Sumeet Yadav
By Sumeet Yadav2026-09-029 min read

Co-Founder & CTO, Venura

Venura Venue OS

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GST & Banquet Billing9 min read

TDS on Banquet Hall Rent: Section 194-I vs 194-C for Corporate Event Bookings (2026)

Venura Industry Resource
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The Statutory Legal Distinction: Section 194-I vs Section 194-C

Understanding the statutory Income Tax provisions for corporate event billing:

1Section 194-C — Bundled Banquet Hall Booking with Catering (2.0% TDS):
Statutory Authority: CBDT Circular No. 05/2002 dated 30-07-2002.
Applicability: When the venue provides the air-conditioned hall, furniture, audio-visual setups, and in-house food catering under a single composite contract.
TDS Rate: Strictly 2.0% TDS on the taxable invoice value (or 1.0% for individual/HUF corporate entities).
Rationale: The provision of food and event amenities makes the contract a 'contract for work' rather than a passive lease of immovable property.
2Section 194-I — Pure Commercial Real Estate Space Rental Only (10.0% TDS):
Applicability: When the venue leases out only the physical hall/lawn space to a corporate client who hires an independent outside caterer.
TDS Rate: 10.0% TDS on Rent (Section 194-I(b) for land and building).

TDS Deduction Comparison Matrix across Corporate Booking Formats

The table below outlines TDS sections, rates, applicable SAC codes, and statutory documentation requirements across corporate event formats:

Corporate Booking FormatApplicable SAC CodeStatutory TDS SectionMandatory TDS RateStatutory Tax Document
Bundled Corporate AGM + Catering (500 PAX)SAC 996331Section 194-C2.0% TDS (Company)Form 16A (Quarterly)
Pure Space Rental Only (Outside Catering)SAC 997212Section 194-I10.0% TDS (Rent)Form 16A (Quarterly)
Day Delegate Corporate Training (DDR)SAC 996331Section 194-C2.0% TDS (Company)Form 16A (Quarterly)
Preferred Vendor Stage Decorator BillSAC 998397Section 194-C2.0% TDS (Company) / 1% (Prop)Form 16A (Quarterly)
Preferred Vendor Commission ReferralSAC 998397Section 194-H2.0% TDS (Finance Act 2024)Form 16A (Quarterly)

Worked Corporate Invoice Example: ₹5.0 Lakh Corporate Conference

The calculation below details a compliant corporate invoice for a turnkey conference at a hotel facility (specified premises) under SAC 996331 with Section 194-C TDS withholding:

Main Ballroom Rental & Audio-Visual Setup: ₹1,50,000.00
Executive Lunch Buffet & High-Tea (300 PAX @ ₹1,000): ₹3,00,000.00
Laser Projection & Podium Microphones: ₹50,000.00
Total Taxable Supply Value: ₹5,00,000.00
Central GST (CGST @ 9.0%): ₹45,000.00
State GST (SGST @ 9.0%): ₹45,000.00
Gross Invoice Total: ₹5,90,000.00
Less TDS Deducted by Corporate under Section 194-C (2.0% on ₹5,00,000 Taxable): -₹10,000.00
Net Payment Due from Corporate Client: ₹5,80,000.00

(Note: For non-specified independent venues, bundled catering is billed at 5% GST [2.5% CGST + 2.5% SGST = ₹25,000 tax], while Section 194-C 2% TDS remains unchanged on the taxable base value).

Reconciling Form 26AS / AIS and Form 16A with Venura OS

Venura streamlines corporate tax compliance:

  • Automated TDS Deduction Tracking: Automatically flags whether corporate clients deducted 2% (194-C) or 10% (194-I), logging the tax credit in customer ledgers.
  • Form 26AS Matching: Reconciles quarterly Form 16A certificates against TRACES portal ledgers, preventing uncredited tax disputes.
  • One-Click Tally Prime Sync: Exports corporate sales journals and TDS receivable ledgers directly into Tally Prime.

Handling Mandatory E-Invoicing & IRN Generation for Corporate Invoices

For venue enterprises with annual aggregate turnover exceeding ₹5 Crores:

  1. 1
    Mandatory B2B E-Invoicing: Corporate event invoices must be uploaded to the Invoice Registration Portal (IRP) to generate an Invoice Reference Number (IRN) and statutory signed QR code.
  1. 2
    Automated IRN Generation in Venura: Generates IRNs via authorized GST Suvidha Providers in real time, embedding government QR codes directly onto output PDFs.
  1. 3
    Input Tax Credit Guarantee: Validates corporate client GSTIN checksums to ensure zero tax credit discrepancies in GSTR-2B.

Vendor Master File & Form 16A TDS Certificate Audits

Ensuring corporate statutory compliance across all corporate clients:

  1. 1
    Corporate Master File Review: Verify active 15-digit GSTINs, corporate TAN details, and billing addresses for all regular corporate clients.
  1. 2
    Quarterly Form 16A TDS Reconciliation: Reconcile 2% Section 194-C TDS deductions against central TRACES portal ledgers, preventing tax filing penalties.

One-Click Tally Prime Sync for Corporate Invoices

Streamlining corporate event accounting workflows:

  • Automated Sales & Purchase Ledgers: Export client tax invoices, vendor expense ledgers, and CGST/SGST splits directly into Tally Prime XML ledgers in under 60 seconds, eliminating manual data entry.
INTERACTIVE OPERATIONAL SIMULATOR

SAC 996331 GST Invoice Generator

Generate compliant 18% GST invoices and manage corporate TDS deductions in real time.

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Sumeet Yadav

Sumeet Yadav

Co-Founder & CTO, Venura

Systems architect specializing in GST compliance automation, Tally Prime ledger synchronisation, and enterprise financial access control for Indian hospitality and catering enterprises.

Frequently Asked Questions

Common Operational Questions

What is the TDS rate on banquet hall booking for corporate events in India?

When a banquet hall provides a composite package of hall rental and food catering under SAC 996331, TDS is deducted at 2.0% under Section 194-C (Contract for Catering) in accordance with CBDT Circular No. 05/2002. If pure space is rented without food, 10% TDS applies under Section 194-I.

What does CBDT Circular No. 05/2002 state regarding banquet hall TDS?

CBDT Circular No. 05/2002 clarifies that where a hotel or banquet hall enters into an agreement with a client to provide facilities including meals/catering for a conference or event, the contract is a contract for catering/work and attracts TDS under Section 194-C, not Section 194-I.

Is TDS calculated on the GST component of the banquet invoice?

No. Under CBDT Circular No. 23/2017, TDS under the Income Tax Act is deducted strictly on the taxable value of services, excluding the GST component, provided the GST is indicated separately on the tax invoice.

How does venue management software track corporate TDS deductions?

Venura OS automatically calculates Section 194-C (2%) or 194-I (10%) TDS deductions on corporate invoices, manages Form 16A certificate reconciliation, and syncs directly with Tally Prime.

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