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TDS on Catering-No seperate bill for labour

TDS 1941 views 1 replies

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.

Replies (1)

According to my opinion TDS should be deducted on the anout paid to the caterers as this is in the nature of contract which includes the payment for goods such as tea, coffee etc. The caterer has given the consolidated bill which includes the payment for his services also.


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