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Is this TDS u/s 194 C or 194J

shravan (103 Points)

04 June 2008

The following is an extract of bill. Will TDS u/s 194 C or 194 J apply? and on which amount should i deduct tds?

Please furnish calculation

Rs.

Meal Vouchers 196000

Service Charges 3920

Delivery Charges 250

Service Tax 510

Total 200680

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16 Replies

deepak thukral (consultancy) (45 Points)
Replied 04 June 2008

TDS amount will have to be deducted on the gross amount paid or credited under section 194C i.e. including the amount of service tax.

Raghavendra RJ (Auditor) (20 Points)
Replied 05 June 2008

Dis is purely the case which comes under 194 C. nothing to do with profesional services, and on gross bill amount tds has to be made

shiv shanker prasad (service) (23 Points)
Replied 05 June 2008

TDS is deducted @ 2.06 under section 194c on gross amount or on amount of bill

Azmathullah Khan (Accounts Manager) (1386 Points)
Replied 05 June 2008

No TDS to be deducted as the above does not come under contract or under Rent.

The meals voucher ur received or purchase is for future use, On use you are required to pay VAT on the meals provided only.

The co., is charging service charges of Rs.3920/- not in the taxable limit, plus even service does not come under profession fee.

Need feedback from the members, Please

Sanjeev Aggarwal (Accountant) (20 Points)
Replied 05 June 2008

The gross amount would be subject to TDS u/s 194C. Here the concern which is providing meal voucher is providing a service and is therefore is liable for tax deduction @ 2% plus SC (if applicable) plus cess @ 3%.

DEEPAK KUMAR TIBREWALA (profession) (101 Points)
Replied 06 June 2008

The gross amount would be subject to TDS u/s 194C. Here the concern which is providing meal voucher is providing a serviceand fall with in the defination of contract as defined under section 194C and is therefore is liable for tax deduction @ 2% plus SC (if applicable) plus cess @ 3%.

Azmathullah Khan (Accounts Manager) (1386 Points)
Replied 06 June 2008

No TDS to be Deducted for Meals Voucher. Any How Please give me the details from where U have taken the meals voucher

shravan (103 Points)
Replied 06 June 2008

Sodexho bills have this. It seems that no one deducts TDS for them. When I scrutinised the bill I wondered whether TDS is applicable or not. From what i can see it is applicable. But i wanted to be sure thats why i have posted here

Ranjini.V (CA Student) (141 Points)
Replied 06 June 2008

shravan,

You can enquire if the company regularly purchases meal vouchers from the same party, the time intervals between each purchase, if the meal vouchers are specially designed for your company.

If the purchases are made frequently that too from the same party you can deem it to be a contract. Further if the vouchers are specially designed, you can treat it as contract and deduct TDS at the rates applicable for a contract...

suparna k s (Student) (227 Points)
Replied 04 June 2009

Is there any notification or circular which says that tds to be deducted on sodexho coupons

Makarand Nashikkar (Practice) (46 Points)
Replied 07 June 2009

The case purely falls under the perview of Section 194C. The TDS will be deductible on the total amount including service charges and service tax i.e. Rs.200680. To fall under section 194J, only those professional/ technical services which are specifically defined under that section. In the case you have mentioned, it will fall under Sec.194C

Amol Gopal Kabra (CA,CS,DISA) (Practicing CA) (8539 Points)
Replied 08 June 2009

This is not a case of any contract or any professional services. The meal vouchers as good as purchases. Even if the service charges exceed the stipulated limit of Rs. 20000/- it wont come under 194j as 194 J is applicable for the professional and technical services. And this service doesnot come under the scope of 194J

Secondly neither it is a contract. As stated above, its a purchase for further use. so it also wont come under the scope of 194C.

S.R.Babu Shankar (CFO) (106 Points)
Replied 08 February 2011

I agree with Amol that purchase of meal vouchers does not fall under section 194C or 194J. The purchase of vouchers are like any other purchases made by the company from any vendor. This can be treated as purchase of food from hotel for staff. I feel if we have contract for catering of food for employees regularly, then 194C is applicable.

I solicit your views on the same.

Pradeep Sharma (Chartered Accountant) (34 Points)
Replied 03 March 2011

Hi Members,

It is nice to see intresting replies. I vote for deducting TDS on this bill. However, I doubt how it can be taken from the words used in section 194C. Actually, the contarct here can mean that a Company is regularly buying the meal vouchers from sodhexo.

Even, I had this doubt and got to know that Sodhexo has got the certificate of lower deduction u/s 197.

So, first point is clear that TDS needs to be deducted. Secondly, considerign the nature of transaction, we can purely take it to 194C. There is no scope for application of 194J here.

I hope this will make the point clear.

Thanks,

Pradeep Sharma