TDS ON MONTHLY PAYMENT FOR TEA & SNACKS

This query is : Resolved

CA Pradeep Kamathe (Querist)
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05 March 2009 One of my client paid monthly bill of Rs. 10000 or more for the purpose of tea & snacks(consumed by him & employees), will it be treated as contract& deduct TDS?

Ramakrishna

Ramakrishna (Expert)
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05 March 2009 Check for the Agreement/contract between your client & the service provider. If the service provider/vendor is charging based on predertermined rates like rupees per cup, then Tax has to be deducted u/s 194C. Where the vendor simply puts the bill against the purchase of tea/coffee material/powder & separately charges for making etc then tax need not be deducted for tea/coffee/snaks material bill as it is simply purchase of material and no service is involved. But tds has to be charged against the bill for his service.

However for all the above cases TDS is subject to the applicable limit as mentioned in section 194C

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