Buffet lunch

TDS not applicable for food and beverage...
All other is not exceeds the limit...

(It's my view)

In case a company organizes a dinner party at a hotel, it may not be called a “works contract” under Section 194C of the Income Tax Act as it may not be a “catering service contract” but only availing of services of waiters and facilities which are already available with the hotel. The guests go to the hotel and dine; it is a simple contract for sale of goods. Serving food to the customers is part and parcel of the duty of the hotel staff in pursuance of the contract for the provision of food.



However, if the same company arranges a dinner within its own premises (say, on its own lawns), then TDS will have to be deducted under Section 194C as in this case, the company hires hotel staff to manage the service of eatables, etc. at the party. Within the hotel, catering was their job anyway. But on the company premises, they're clearly "carrying out a piece of work" outsourced to them. It is no longer a contract for the mere sale of eatables, notwithstanding that VAT may have been charged in the bill. The TDS will have to be deducted on the entire amount paid to the hoteliers.

Dear All ,
But there is work shop held with dinner , hence hotel hall premises used , projector etc used. Hall rent includes in buffet lunch. Hence what is the tds scenario.

You asked(&think) the query like want to deduct TDS.

If you want/will deduct TDS then deduct u/s 194I ...

Then you have to deduct TDS u/s 194I as the amount is more than Rs 180000/-

Dear All,
Not to make misunderstanding .I take inference that buffet lunch and work shop conducted.Hence obviously hall premises used .It is implied that hall charges included in buffet lunch

Dear Rajkumar,

Please understand the hall charges, electricity charges, Service man charges, Vessels charges and all other charges which serving the food is included in the Buffet... Right...??

(Not to make misunderstanding...)

We don't take it with misunderstanding. You just think we take that charges only for buffet food...

Our replies As per Your said billing value...

ask the details from the hotelier and Consult with Your Auditor...

As you have availed services of hotel for buffet lunch and along with it some petty facility was also provided by the hotel(projector, Mike,pointer) then the whole services are considered as contract. & TDS u/s 194C will be only applicable on whole amount of Rs.2,25,000.

TDS not applicable Ji...

In my view it's applicable, there are also number of cases in favour and against both

Originally posted by : CA Rashmi Gandhi
	In my view it's applicable, there are also number of cases in favour and against both

Any number of case laws available.

But, it's not for FOOD....

Let me check for some....

Any contract formation is there...