Tds
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 December 2011
in a company a vender provide the breck fast,scaks, and raised the bills, my query is should we have to deduct the TDS
27 December 2011
yes. its contract u/s.194C
27 December 2011
In my view TDS not attracted as it is nothing but sell off food. So TDS not required to be deducted. Whats your take on this, Ramesh Ji?
27 December 2011
Thanks Sanjay Ji. In the given case the supply of breakfast (Food) I am taking in 2 views
1. If the vendor selling the food directly to the employees collecting amount from them, no contract exist in between company and vendor -such as case no tds apply
2. Here the case is Vendor raising the bill to the Company, there will be the element of contract exist between company and vendor, this may called catering services, so TDS will apply. for this i unable to provide any legal supporting but As per the circular no.785 dt:8.8.1995. CBDT clarified that TDS not applicable when the caterer payment is made for serving food in a restaurant in the normal course of running of the restaurant/cafe.
So in the above circular giving exception for catering service only on restaurants.
1. If the vendor selling the food directly to the employees collecting amount from them, no contract exist in between company and vendor -such as case no tds apply
2. Here the case is Vendor raising the bill to the Company, there will be the element of contract exist between company and vendor, this may called catering services, so TDS will apply. for this i unable to provide any legal supporting but As per the circular no.785 dt:8.8.1995. CBDT clarified that TDS not applicable when the caterer payment is made for serving food in a restaurant in the normal course of running of the restaurant/cafe.
So in the above circular giving exception for catering service only on restaurants.
27 December 2011
Thanks Ramesh Ji for giving your views.
But in my view it is simply supply of food i.e. sale of food and therefore no TDS shall be deducted. Also no service being rendered just the supply of foods.
But in my view it is simply supply of food i.e. sale of food and therefore no TDS shall be deducted. Also no service being rendered just the supply of foods.
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