TDS on Catering contract

TDS 1957 views 2 replies

We have entered into contract with one caterer to provide brekfast,lunch & dinner at some specific rates say Rs.20,Rs.40 & Rs.35 respectively at our office as well as guest house.

Caterer has submitted bill based on number of breakfast,lunch & dinner provided for Rs.350000/- for the month of Nov-2010.

My question is whether TDS to be deducted from his bill ?

If yes, at what rate.

In my opinion TDS is not applicable because the caterer is selling food to us.

 

 

Replies (2)

ya it should not be applicable...since contract is not to serve the food...instead it was to sell the food..Sir, i think u r right

Originally posted by : Moti Lal Agrawala

We have entered into contract with one caterer to provide brekfast,lunch & dinner at some specific rates say Rs.20,Rs.40 & Rs.35 respectively at our office as well as guest house.

Caterer has submitted bill based on number of breakfast,lunch & dinner provided for Rs.350000/- for the month of Nov-2010.

My question is whether TDS to be deducted from his bill ?

If yes, at what rate.

In my opinion TDS is not applicable because the caterer is selling food to us.

 yes it is applicable, because you had contract with them.

 


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