Tds applicability.

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M (Querist)

02 January 2018 Dear Sir,
We are paying monthly tea bill to some Hawker, who is residing outside the factory premises.
He regularly supplies ready made tea to our workers three times daily, for which he raise hand made bill to us, it is around Rs. 30000 and more.
We are paying him through account payee cheque in his personal name.
Sir, are there any liability of TDS?

Please suggest.

Waiting for an earliest reply.

Regards,
M.K.Mandal

RAJA P M

RAJA P M (Expert)

02 January 2018 As per my view., TDS not applicable in this case. It's supply of goods, also it's not consider as Services...

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KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

02 January 2018 TDS applicable u/s 194C if it exceeds below limits...Single payment or credit, Rs. 30,000, Rs. 30,000. Aggregate amount paid or credited or likely to paid, Aggregate amount of such sums credited or paid doesn’t exceed and doesn’t likely to exceeds Rs. 1,00,000 /-

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RAJA P M

RAJA P M (Expert)

03 January 2018 Sir., Please explain how to TDS applicable...?

Prakash Kochar

Prakash Kochar (Expert)

03 January 2018 If Tea is served in office premises as per contract may be oral, it will attract TDS. If tea is purchased on credit at his counter it will be treated as sale of goods which may not attract provisions of TDS.

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RAJA P M

RAJA P M (Expert)

04 January 2018 Yes... I agreed to Prakash Kochar., Exact view...

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