Yesterday I came across a discussion on CAClub where I got to know that Sodexho Coupons are covered under the scope of Contract & TDS is applicable. Now I just wanted to know following points.
1.) On the bill provided by Sodexho they mention amount of Sodexho coupons booklet provided + Service Charge + Service tax on SERVICE CHARGE only & not on entire amount. From there it is confirmed that they are providing service to the extent service charge mentioned.
2.) As far as value of booklet is concern is one sort of credit voucher - i.e. instead of cash at meal outlet we can use such coupons. That means it is the nature of purchase of goods & not the service. So how can we deduct TDS on such value of coupons? As if they provide proper breakup of all items.
3.) I also admit that if my service charge total cross the threshold limit specified u/s 194C then such amount of service charge is subject to TDS.
Pls correct me if I am wrong on any concepts. Thanking you all in advance.
Varsheet Shah
CAclubindia
