CA
63 Points
Joined August 2007
Yes
I agree with Vidya
Catering services are specifically included under section 194C. Hence TDS is required to be deducted if any single paymnet exceeds Rs. 20000/- or if the aggragate payment exceeds Rs. 50000/- during a year.
Further, I would advice that tax be deducted from the immediate payment itself if annual catering expenditure on estimated basis falls fairly above Rs. 50000/- (say 10000/- per month). This would save on interest for late deduction with retrospective effect.