10 April 2009
Dear Friends, We have a client who is a non governmental organisation running a working womens hostel. They have recently floated a tender through paper advertisement to identify potential grocery suppliers with sufficient resources for supplying grocery itmes and vegetables to their hostel on daily basis for a period of one year. The number of inmates of the hostel is around 100 and the dialy payment to the grocerywala would be of the order of around Rs. 1600/-. This is only a purchase arrangement. Section 194C talks about works contracts alone. Please clarify whether TDS has to be made u/s. 194C? With regards.