194c contract

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This query is : Resolved

Ravi Teja (Querist)

28 February 2013 "Purchase of food packets from canteen and giving to employees." Does it mean contract between company and canteen. Is there any need to deduct TDS while making payment?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

28 February 2013 In case the canteen wala has entered into an agreement with the company to supply food packets to the employees and he is being paid in pursuance to such contract, then TDS U/s 194C is deductible.
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If he is selling the food packets directly to the employees or to the Company, no TDS .
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Ravi Teja

Ravi Teja (Querist)

28 February 2013 hi sir,
In this case what happened was the company spent the amount in purchasing the food packets from out side a hotel for some days and had given to the employees.They have not entered into any contract. And the company claimed the expenditure but the department is disallowing the expenditure by saying that it is a contract and the company have not deducted the TDS. So what to do?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

28 February 2013 A suitable reply may be drafted by you by producing the Food Packets purchases Bills.
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(Apply Dinner Diplomacy)
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Ravi Teja

Ravi Teja (Querist)

28 February 2013 Dear sir,

can u please brief it Dinner Diplomacy means?

thank you for your explanation

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