TDS on Canteen expenses

Sameer (Chartered Accountant) (197 Points)

18 March 2011  

Dear All,

I have a confusion about TDS. Can any one help me out regarding a query whether TDS is deductible on canteen expenses? Let me clarify the situation:

The company is having a contract whereas the contractor will supply materials as well as labour and will charge a certain amount at an agreed fixed rate on coupons used by the employees of the company.