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Tds on catering bill

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Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2016 There is catering contractor for a company. Company is providing only facility for cooking and Per meal price is agreed at 30 Per Meal served. At end of month he is raising 2 invoices. First invoice is for 2000 Meals @ 17 Per Meal and other is for balance amount as per agreement stating reimbursement of expenses ( Material Portion). Now company is only deducting TDS U/s 194C on First bill and not on Reimbursement one. Is that Correct ?

Murtaza I Bhagat

Murtaza I Bhagat (Expert)

01 June 2016 Company is doing proper treatment. if company has given cooking contract and for material company ask the agency to raise the bill and take payment of material as reimbursement.So as per my view company have to deduct tds on per meal invoice and take material invoice as expense by giving payment to agency.

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