Recently i came across a situation and got confused.
A company outsources its stall to caterers to provide its staff with tea and coffee. The caterers raises bill for all three items viz. Coffee, Tea and milk which includes their profit and no seperate bill for labour charges. They also add VAT @ 2% on Tea and Coffee. Kinldy clarify me whether TDS needs to be deducted on the total bill amount? and whether 194C holds good in this scenario? i hope TDS shall not be deducted as this is in the nature of re-imbuirsemetn of food expenses.