loophole of TDS law (Hi Experts need your opinion)

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girish (Querist)
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24 March 2008 Whether tax to be deducted in case of supply of food/tea by a hotel at office premise. assuming payment crossing the limit.

It is not a catering type of arrangement

No doubt serving food at restaurant is not covered U/s-194C.

Just because person (Labour/waiter) coming and providing the facility. is it necessary to deduct tax ?

pushpendra

pushpendra (Expert)
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24 March 2008 It is always better to deduct tax if the limit cross.

Jitender

Jitender (Expert)
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24 March 2008 no ,no tax is deductible.

girish

girish (Querist)
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25 March 2008 please do not conclude the law in one sentence. Explain why to deduct and why not to deduct

CA. Kirti S. Ganatra

CA. Kirti S. Ganatra (Expert)
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25 March 2008 They are providing service so on services where Service Tax apply you should deduct TDS. But if any VAT is taxed Deduct TDS after VAT items

R.V.RAO

R.V.RAO (Expert)
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25 March 2008 UNDER SEC 194 C IF A SINGLE PAYMENT EXCEEDS RS 20000/- OR EXCEEDS RS. 50000/-OF AGGREGATE PAYMENT IN A FIN. YEAR,TDS IS DEDUCTIBLE ONLY IF SUCH A PAYMENT IS MADE IN PURSUANCE OF A CONTRACT BETWEEN A SPECIFIED PERSON AND A RESIDENT CONTRACTOR .
SPECIFIED PERSON INCLUDES FIRM, COMPANY ,COOP. SOCIETY,LOCAL AUTHORITY,CENTRAL OR STATE GOVT.SOCIETY, TRUST,UNIVERSITY ETC...
TDS IS DEDUCTIBLE FOR CARRYING OUT ANY WORK BY A CONTRACTOR INCLUDING SUPPLY OF LABOR FOR CARRYING OUT ANY WORK .
WORK INCLUDES CATERING TYPES OF JOBS ALSO.
IF VAT IS CHARGED BY CONTRACTOR ,TDS IS DEDUCTIBLE AFTER ADDING VAT TO THE CONTRACTOR BILL.
IF SERVICE TAX IS CHARGED ADD SEVICE TAX TO CONTRACTOR BILL AND THEN DEDUCT TDS.
IF VAT OR SERV. TAX BOTH ARE NOT CHARGED BY CONTRACTOR ,THEN TDS IS APPLICABLE ONLY ON LABOR CHARGES CHARGED BY CONTRACOR.
IF CONTRACTOR ADDS MATERIAL AND LABOR IN HIS BILL, WE NEED TO DEDUCT TDS ON TOTAL OF BOTH.
R.V.RAO

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