Payment to hotel restaurant for employee dinner

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com )   (3468 Points)

18 October 2012  

There was a dinner party of the company for all employees in a restaurant of a reputed hotel. The hotel has sent invoice as follows:

                                               Cost

Add: VAT

Add: Service Tax

Should the payment to be made to them suffer tax deduction at source under section 194C ?

Regards