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TDS on Payment made to Caterer

CA Shashank Bansal (Executive-Audit) (57 Points)

10 June 2010

Hi.....whethet TDS is deducted if a company makes monthly payment to caterer for providing food and other refreshments to Company Employees.........

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7 Replies

CA. Gurdeep Singh Chawla (C A) (7080 Points)
Replied 10 June 2010

Yes

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SIVASIVA (FCA, Future CA) (4935 Points)
Replied 10 June 2010

Catering is also a service, they are on a Specific agreement.

Say for example, if there are different caterers come every now and then,

there will not be any agreement at all.

Hence, if the total value of expense exceeds Rs.50000 or individual bill exceeds Rs.20000 it will attract TDS LIABILITY

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8311 Points)
Replied 10 June 2010

Yes

RITESH KOTHARI (B.COM, FCA, DISA(ICAI)) (778 Points)
Replied 11 June 2010

Yes, TDS has to be deducted.

Also, limits of Sec 194C has been increased to Rs. 30000/- for single payment & Rs. 75000/- for whole year w.e.f. 01-07-2010

vijay (.) (212 Points)
Replied 11 June 2010

Thanx Mr. Ritesh Kothari for the Information

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CA Shashank Bansal (Executive-Audit) (57 Points)
Replied 12 June 2010

Thank u Friends for ur reply................... there is no contract entered between the company and the caterer so how can we deduct TDS under sec 194C.......The actual position is this that the caterer offers refreshments to the company Employees in the evening on the order daily placed by the company but the payment to that person is made on monthly basis.........

CA Shashank Bansal (Executive-Audit) (57 Points)
Replied 12 June 2010

There is a circular regarding this -"TDS is not required to be made when payment is made for serving food in a restaurant in the normal course of business of the restaurant. [Circular No.715 dt.8-8-1995]."- Now Friends what r your comments on this........