banner_ad

TDS

TDS 1195 views 7 replies

DEAR SIR,

                     I AM  MAKING PAYMENT FOR LUNCH TO A CONTRACTOR. IS TDS DEDUCTED ON THIS.

THANKS,

Replies (7)

no since it is reimbursement of the expenditure you need not deduct tds. If you are taking any service and you have to pay then you have to deduct tds as applicable

 

Yes tax has to be deducted if any one payment to the vendor exceeds Rs.20,000/- or if the aggregate value of all the bills raised by the vendors exceeds Rs. 50,000/- in any one FY.

Please refer section 194C of the Income Tax Act for further details.

i agree with what vidya has said

Dear sir

Please send the 281 challan in excel format .

Rgds

Vishwas

If it is a Purchase  of food, no TDS. If it is a contract to make food as per specification in our premises, and supply at our premises, it is a composit contract and TDS is applicable

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.

Tax at source is not required to be deducted under any circumstances. The transaction is that of a sale only. Contractor is being paid for lunch sold.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details