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TDS on Catering Charges with VAT

TDS 1921 views 1 replies

aman gupt

FPS

49 Points Joined June 2009

Hi All,

I am a part of the compliance team at a very reputed MNC. I am also working as the auditor for invoice processing for India. I receive invoices for which I need to ensure that correct TDS is being deducted. Recently I recd an invoice whereby the Vendor has supplied pantry(milk,tea powder etc.) and also performed catering services. As per 194C,TDS on catering services has to be deducted. However the vendor has charged VAT on the catering services.

Is deducting TDS on such invoice correct?

On what amount should TDS be deducted, Gross Amount or simply on Catering services?

Also what is composite VAT rate, if anyone can provide any guidance on the same?

Thanks

Aman

Replies (1)

PRAVEEN KUMAR

MBA (Finance) B.Com.(P)

3443 Points Joined March 2007

Hi,

The case is very intresting.

in practice we do not deduct tds on VAT bills but this matter is related to catering which comes under section 194C. so i suggets you it is better to deduct TDS (safer side).

i m waiting & welcoming any expert comment on this topic.

Thanks