Tds applicability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2012 Assessee: Company

Company is paying amount at the end of the month
For the suppling of daily tea & coffee for there Employees to one of the Small Coffee supplier (Individual)

And the Expenditure it exceeds more than 75000pa whether tds will applicable for this transaction and under which section?

@VaibhavJ

@VaibhavJ (Expert)
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30 October 2012 Hi

TDS will be applicable when aggreagate total payment exceeds Rs.75K.

If one of the ingle bill is more then 30K then on the same TDS is need to be deducted.

Rgds//Vaibhav
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CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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30 October 2012 No need to deduct Tds , It can be argued as sales.

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Hemant Kumar

Hemant Kumar (Expert)
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30 October 2012 Yess there will be no need to deduct tds. agree with CA Dileep Surya Kumar.

@VaibhavJ

@VaibhavJ (Expert)
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30 October 2012 Hi

Definately no TDS will be applicable if it is accounted as petty expenses on daily basis.

However if Invoice is submitted by supplier then it calls for audit & TDS will be applicable.

What would have been the situation if vendor operating under canteen facility.

Rgds//Vaibhav