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TDS on Canteen Supplier

TDS / TCS 2451 views 5 replies

IN A MANUFACTURING COMPANY A CANTEEN WAS GIVEN ON CONTRACT

A SUBSIDY OF RS. 4500/- WAS ALSO GIVEN TO THE CONTRACTOR

MONTHLY BILL OF CONTRACTOR INCURRED APPX. 28000/- (INCLUSIVE OF TEA, SNACKS FOR GUEST & EXECUTIVES  AND FOODING FOR OVERTIME JOB OF WORKERS) (32500-4500)

IS CONTRACT TAX (U/s 194 C) ATTRACT? IF YES ! ON WHICH AMOUNT.

Replies (5)

can you explain nature of subsidy  to contractor

Yes, TDS is deductible and TDS is deductibel on gross amount of bill.

THANKS MR PANKAJ FOR REPLY.

SUBSIDY OF RS. 4500/- HAS BEEN GIVEN TO THE CONTRACTOR FOR SUPPLYING MATERIAL IN REDUCE RATE.

SOME ONE TOLD THAT THE TDS IS APPLICABLE ONLY ON THE AMOUNT OF SUBSIDY AS HE IS SUPPLYING MATERIAL (TEA , SNACKS, FOOD) SO NO TDS SHOULD BE DEDUCTED ON THE MATERIAL PART OF THE BILL. (AS PER THAT TDS IS APPLICABLE ONLY FOR RS. 4500/-)

 

Dear Frds,

Just Advice, I am not confirm,

There is 2 type.  1. total bill per 2.266% rate deducted.

&  2 below.

Frds,  You call no. 2 bills. 1. Contract Bill (4500/-)  &  2 . Matrial Suppler Bill. & You pay tax only Contract (4500/-) Bill 2.266%

Ph. no. 41000530  ext. 324.

Dear sir,

All detail for TDS & service Tax & sales tax & central excise

Please send to all detail

Thanking you,

your fridendly

s.vijayakumar

vijayprt1978 @ rediff.com


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