TDS on Canteen Expenses

UNDER SEC 194 C OF INCOME TAX ACT, TDS SHOULD BE DEDUCTED BOTH FOR SUPPLY OF GOODS AND FOR LABOUR SERVICES. THE PROCEDURE FOLLOWED BY THE COMPANY IS INCORRECT.

I agree with Snehashree.

TDS Should be deduct Rs.40,000/-

As there is contaract between the 2 parties TDS Should be deducted on Both the bill.

TDS SHOULD BE DEDUCTED ONLY ON THE LABOUR BILL. THE BILL GIVEN BY THE CANTEEN CONTRACTOR IS FOR REIMBURSEMENT OF  FOOD EXPENSES, ON WHICH TDS NEED NOT BE DEDUCTED. THEREFORE THE PROCEDURE FOLLOWED BY THE COMPANY IS CORRECT.

THE PROCEDURE FOLLOWED BY THE COMPANY IS CORRECT. TDS NEED NOT BE DEDUCTED ON THE BILL 1 AS IT THE BILL FOR REIMBURSEMENT OF FOOD EXPENSES.

UNDER SEC 194 C OF INCOME TAX ACT, TDS SHOULD BE DEDUCTED ON THE  VALUE OF CONTRACT  IF CONTRACT EXISTS. IT IS NOT NECESSARY TO SEGGREGATE THE VALUE OF GOODS SUPPLIED AND LABOUR CHARGES INCURRED. CONTRACTOR IS NOT ACTUALLY REIMBURSING THE EXPENDITURE INCURRED BY HIM .IT ALSO INCLUDES PROFIT PORTION. SO THE PROCEDURE FOLLOWED BY THE COMPANY IS INCORRECT

if the food bill included VAT, then TDS is not applicable on food bill.

If food has been purhased from someone else and re sold to the company, then only labour charges for serving the food is the ontrat and sale of food incl. VAT is not applicable. If caterer is claiming reimbursement for food, then there should be a bill from supplier of food for that amount. For raw vegetables etc. there will be no bills unless he purchases from malls etc.  It is better you deduct TDS on the full amount if food is for raw vegetables or even grains used for cooking in your premises.

In our copany the caterer supply the food. against this bill we provide 50% reimb to our employee & we book the balance 50 % bill as reibursement please tell me what is the procedure to deduct the tds should i deduct the tds on whole bill or ??????????

Please tell me what documents are required for a NRI to get the Pan Card from Govt. of India 

In our company,we have given contract for serving food on meals basis for example Lunch @ 55/-,Dinner @ 55/- and breakfast @ 30/-. The contractor has raised bill for Rs.480000/- based on number of lunch,dinner & breakfast.Please advice whether TDS to be deducted or not.