TDS on Catering Services Security and House keeping services

This discussion clarifies the Tax Deducted at Source (TDS) obligations for a startup proprietor entity providing housekeeping and security services, which also uses catering services. The initial query concerns whether TDS under Section 194C is applicable to catering services. Experts advise that TDS liability typically arises if the entity is liable for tax audit under Section 44AB in the preceding financial year. For a new business, TDS is generally not required in the first year of commencement, but it will become applicable from the subsequent year after the current financial year's audit.