Is this TDS u/s 194 C or 194J

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.

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

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

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

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%.

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%.

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

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

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...

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

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

 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.

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.

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