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TDS ON FOOD SERVICES

24 April 2020

Hi all

What is tds applicability on payment made to tiffin services provider by company with reference to some circular/ notification if it is deductable u/s 194C.

Do it is included in catering ?

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5 Replies

RAJA P M ("Do the Right Thing...!!!") (127400 Points)
Replied 24 April 2020

Yes... If billings are without splitting.

VINAYAK (Assistant Finance Manager) (46 Points)
Replied 25 April 2020

Two things .. If the billing has spilltted into Material and Services then TDS will be applicable on the Service Value under Section 194C at 2% or 1% as the case may be otherwise full value of Invoice before GST will attract for TDS..

2 Like

sabyasachi mukherjee (26219 Points)
Replied 25 April 2020

2% and 1% rate are seperately on company and individual.

Vinay Garg (15 Points)
Replied 25 April 2020

Do it cannot be considered "purchase of lunch", and hence in that case no TDS is applicable?

Also when it will be considered as purchase of lunch ?

sabyasachi mukherjee (26219 Points)
Replied 25 April 2020

@ vinay

it's basically entrusting someone for this job.
it's a mutual.agree.ent enforceable by law.
so it's a contract.
now under which section sec 194 1c