TDS ON LUNCH

If company pays to 5 star hotel for 100 persons lunch expenses, is TDS applicable? (Hotel Bill is Basic + Service Tax + VAT)

Replies (5)

tds is not applicable in this case as it sale of goods(though not in a proper sence)

YES...

INTHIS CASE UR TDS LIABILITY ARISE......CONTRACT 2% ONLY IF BILL EXCEEDING 20000

NO NEED TO DEDUCT TDS BECOZ  WILL BE DEDUCTED ON CONTRACT  

Originally posted by : djtauraus

tds is not applicable in this case as it sale of goods(though not in a proper sence)

dear djtauraus tds is also deducted on saleable goods , for hotel it is sale but for us it is not purchase it is our expense and above 20000/- itds should be deducted if i am wrong plz correct me

Dear Deepak,

The transaction is in the nature of contract and tax has to be deducted u/s 194 of IT Act. @ 2%

Single bill @ Rs.20000 or more & for the year it is @ Rs.50000 & above then only TDS comes in a picture.

Regards

 

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