Tds on supply of tea and snacks

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This query is : Resolved

BHUTESH KUMAR MALVIYA (Querist)

10 July 2018 Dear Expert,

We have invited a tea seller to our factory premise and made a contract for supply of tea, snacks and lunch and dinner as well. We are not receiving any rent by that tea seller as well as we are also not providing any material but we have a written contract to provide tea and snacks on demand.
Till the date we have not deducted any TDS on payments to such considering supply of goods as well as not providing material to Tea seller, but our internal auditor raised observation on these payments.
However we read all the terms and provisions regarding the same but a technical point is we have contract and not realizing any rent from tea seller.

In the lights of provisions of IT Act 1961, please suggest whether TDS will be deduct or not?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

10 July 2018 TDS applicable u/s 194C if Threshold limit The payer has to deduct Tax at Source from the sum to be paid to the contractor or sub-contractor where; The total sum credited or paid during the financial year exceeds Rs. 100,000 or. Any single sum credited or paid exceeds Rs. 30,000.

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