Tds on office picnic expense

In my opinion, TDS will not be deductible as there is no contractual obligation for the same.

Moreover the amount does not exceed the limit prescribed u/s 194 I, hence 194 I will not applicable also

yes tds will not be deductible. according to section 194i tds will be required when hotel accomodation taken on regular basis.. 

and refer circular no. 5/2002, dated 30july,2002.