Tds on payment to hotel

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2014 Party A organised meeting in its own hall and booked a hotel for supply of lunch.
Party B(Hotel pvt ltd) raises bill as
SALE BILL

Lunch 50*700 35000

35000
Less abatement
50% 17500
17500
Vat @ 12.5% 4375
@ 1.5% 525
Service tax @ 12.36% on
17500 8750

Net Amount 48650

Now my Question is whether tds is applicable and if yes then on which section

Amol S Joglekar

Amol S Joglekar (Expert)
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19 November 2014 Party A....(Assumed to be a company)
TDS is applicable u/s 194C

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2014 But this is a sale bill
They just supply food still tds will be applicable

Amol S Joglekar

Amol S Joglekar (Expert)
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20 November 2014 It amounts to contract u/s 194C. (selling food at your premises can not be regarded as the daily business of that hotel and hence it amounts to contract)
And one more simple proposition of TDS. (Let the person go to income tax officer and apply for NO TDS, why payer should be worried?)

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