Tds on food bill

As per section 194C the term work includes 'Catering'.  As the amount is being paid towards food bill from hotel ind,  TDS @ 2% needs to be made as follows:

if single bill exceeds Rs 30K or

if aggregrate payments exceeds Rs 75k during the F.Y..

In case of deductee is Individual & HUF it is 1%, but for others its 2% for the above mentioned threshold limit exceeds.

In case of No PAN or Invalid PAN the TDS to be deducted is 20%

Originally posted by : tanvi
	Originally posted by : Giridhar S Karandikar As per section 194C the term work includes 'Catering'.  As the amount is being paid towards food bill from hotel ind,  TDS @ 2% needs to be made as follows: if single bill exceeds Rs 30K or if aggregrate payments exceeds Rs 75k during the F.Y..   In case of deductee is Individual & HUF it is 1%, but for others its 2% for the above mentioned threshold limit exceeds. In case of No PAN or Invalid PAN the TDS to be deducted is 20%

I slightly differ from the explaination or solutions given, if the trasaction is of personal nature not TDS will be required to be deducted.

If bill of food is having descripttion of service provided and that service including service tax exceeds Rs. 30,000/- in single time or Rs. 75,000/- annually, then and then only TDS will be applicable in this case as per the above quoted Rates.

YES.YES APPLICABLE  

TDS IS TO BE DEDUCTED U/S 194C.

CHECK YOUR BILL AMOUNT..SINGLE  EXCEEDING Rs 30000..

ANNUALLY OF RS 75000...

RATE IS 2% OR 1% DEPEND UPAN THE DEDUTEE 

Dear Sir/Madam, We can get a clear picture while go through the below Judgement by the Bombay High court in the case of East India Hotels‐vs‐CBDT 320 ITR 526 (Bom): The issue before the court was whether services provided by a hotelier would fall within the scope of the said expression. The court answered in negative by observing as under: “The expression “carrying out any work” in section 194C is limited to any work which on being carried out culminates in to a product result. In other words, the word “work” in section 194C is limited to doing something with a view to achieve the task undertaken or to carry out an operation which produces some result.” “The services rendered by a hotel to its customers by making available certain facilities/amenities like providing multilingual staff , 24 hour service for reception, telephones, select restaurants, bank counter, beauty saloon, barbar shop, car rental, shopping centre, laundry, health club, business centre services etc do not involve carrying out any work which results into production of the desired object and therefore, would be outside the purview of section 194C of the Act.” Hence my understanding is that there is no requirement to deduct the TDS on Restaurant and other services rendered by Hotel other than rent .

Hi,

Please confirm me that, TDS is applicable on payment made to Hotel towards Food and place (Event /Seminar). 

Hi,

I am going to payment to an Individual for catering services provided in our annual office picnic.My question is should I dedect TDS whicle making a onetime payment of Rs.61570.00 or I just pay the amount 61570.00 excluding TDS amount.

Please let me know wheather I deduct TDS or not.

I am waiting for your advice.

Thanks

Atanu Banerjee

may i want to know can i deduct tds against expenses bill or not?

if the service bill amount excess of rs. 30000 deduct tds