TDS-Canteen

This query is : Resolved

philip (Querist)
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31 January 2008 Dear Sir,
We are paying the Canteen owner Rs. 50,000/- every month for providing our Institute employees tea and snacks. The amount paid is from 3 different Accounts (3 different Institutes of one campus). Kindly tell us whether we should deduct TDS while making payment to him?
Institute has given canteen to him on rental basis.

Sohil Ganeriwala

Sohil Ganeriwala (Expert)
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31 January 2008 yes TDS has to be cut for payments made through all 3 accounts.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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31 January 2008 Clarifications required:

You are saying canteen owner. What does that mean?

He owns a canteen which prepares and supplies food to you like for any other outsiders, like say a hotel?

OR

He makes food as per your requirements and serves to employees?

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Shyam Lal Naik

Shyam Lal Naik (Expert)
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05 February 2008 It appears that the contract is for supply of food, beverages etc. and not a service contract. TDS not attracted.

philip

philip (Querist)
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06 February 2008 Thank you