Current TDS & TCS Rates on OTA Payments
TDS (Section 194-O)
0.1%
TCS (GST Section 52)
0.5%
Total Deduction
0.6%
What is TDS on OTA Payments?
TDS (Tax Deducted at Source) under Section 194-O requires e-commerce operators (OTAs) to deduct tax when making payments to hotel sellers.
| Aspect | Details |
|---|---|
| Section | 194-O of Income Tax Act |
| Rate | 0.1% (5% if no valid PAN is on file) |
| Deducted by | OTA (MakeMyTrip, Goibibo, etc.) |
| Deducted on | Gross room value before commission, excluding GST shown separately on the invoice |
| When | At the time of credit or payment, whichever is earlier |
What is TCS on OTA Payments?
TCS (Tax Collected at Source) on OTA bookings is a GST provision. Under Section 52 of the CGST Act, an e-commerce operator such as MakeMyTrip or Booking.com collects a small share of each booking's value from you and deposits it against your GSTIN. It is not the income tax TCS under Section 206C(1H): that section covered sales of goods, never hotel rooms, and it stopped applying on 1 April 2025. For the current GST rates on hotel rooms (5% and 18%) see the GST on hotel rooms guide.
| Aspect | Details |
|---|---|
| Section | Section 52 of the CGST Act, 2017 |
| Rate | 0.5% (0.25% CGST + 0.25% SGST, or 0.5% IGST). Cut from 1% on 10 July 2024 |
| Collected by | OTA, against your GSTIN |
| Collected on | Net taxable value of the room (before GST) |
| Threshold | None. It applies from the first booking |
| Where it shows | GST portal, from the OTA's monthly GSTR-8 return |
Not GST-registered? Then there is no TCS. For a hotel that is not registered for GST, the OTA pays GST on the room itself under Section 9(5) of the CGST Act, as the deemed supplier. Check your contract and settlement statement to see which treatment your OTA applies.
TDS vs TCS: Key Differences
| Factor | TDS (Section 194-O) | TCS (GST Section 52) |
|---|---|---|
| Which tax | Income tax | GST |
| Rate | 0.1% | 0.5% |
| Linked to | Your PAN | Your GSTIN |
| Threshold | None for companies and firms | None |
| Credit used against | Income tax, in your ITR | GST liability, via the electronic cash ledger |
| Reflects in | Form 26AS / AIS | GST portal (TCS credit from GSTR-8) |
Calculation Example
Let's see how TDS and TCS affect your OTA settlement:
Booking Details
Room Rate (per night)
₹5,000
GST on Room (5%)
₹250
Guest Pays (Total)
₹5,250
OTA Deductions
Commission (20% on ₹5,000)
- ₹1,000
GST on Commission (18%)
- ₹180
TDS (0.1% on ₹5,000)
- ₹5
TCS (0.5% on ₹5,000)*
- ₹25
Your Settlement
₹4,040
*GST TCS applies to GST-registered hotels from the first booking. The ₹250 room GST is still yours to pay in your GST return.
How to Claim TDS/TCS Credit
- TDS: check Form 26AS. The OTA's 0.1% TDS appears against your PAN on the Income Tax portal after it files its quarterly return
- TDS: claim in your ITR. Reconcile 26AS against the OTA's TDS certificates (Form 16A), then claim the credit when filing
- TCS: accept it on the GST portal. The OTA's 0.5% TCS appears from its monthly GSTR-8 return. Accept it and it moves to your electronic cash ledger
- TCS: use it. Pay your GST from the cash ledger, or claim a refund of any excess balance
Pro Tip: Download TDS certificates and monthly TCS statements from each OTA extranet. Keep them for reconciliation and audit purposes.
What If PAN is Not Provided?
| Scenario | TDS Rate (194-O) |
|---|---|
| PAN provided and valid | 0.1% |
| PAN not provided or invalid | 5% |
50x higher deduction. Without a valid PAN on file, the OTA deducts 5% instead of 0.1%: ₹250 instead of ₹5 on a ₹5,000 booking. Check that your PAN is registered correctly with every OTA. GST TCS works off your GSTIN, so it stays at 0.5% either way.
OTA-wise TDS/TCS Practices
| OTA | TDS Deduction | TCS Collection |
|---|---|---|
| MakeMyTrip/Goibibo | Yes (0.1%) | Yes (0.5% GST) |
| Booking.com | Yes (0.1%) | Yes (0.5% GST) |
| Agoda | Yes (0.1%) | Yes (0.5% GST) |
| Expedia | Yes (0.1%) | Yes (0.5% GST) |
| Yatra | Yes (0.1%) | Yes (0.5% GST) |
Common Issues & Solutions
1. TDS not reflecting in Form 26AS, or TCS missing on the GST portal
- TDS appears quarterly, after the OTA files its TDS return. TCS appears monthly, after it files GSTR-8
- Contact OTA partner support with booking references
- Check that the PAN and GSTIN in the OTA extranet match your registrations
2. Mismatch between OTA statement and Form 26AS
- Verify OTA's TAN (Tax Deduction Account Number)
- Check for timing differences (accrual vs payment basis)
- Raise ticket with OTA's finance team
3. Double deduction concerns
- TDS and TCS are different provisions under two different taxes, so both apply
- TDS is credited against income tax; TCS against GST
- You're not losing money - it's advance tax payment
Remember: TDS and TCS are not additional costs - they're advance payments. You claim TDS back in your income tax return and use TCS to pay your GST. If you never claim them, though, they do become a cost, so reconcile every month.