TDS on Payment made to Caterer

TDS 1416 views 7 replies

Hi.....whethet TDS is deducted if  a company makes monthly payment to caterer for providing food and other refreshments to Company Employees.........

Replies (7)

Yes

Catering is also a service,  they are on a Specific agreement.   

Say for example, if there are different caterers come every now and then,

there will not be any agreement at all.

Hence, if the total value of expense exceeds Rs.50000 or individual bill exceeds Rs.20000 it will attract TDS LIABILITY

Yes

Yes, TDS has to be deducted.

 

Also, limits of Sec 194C has been increased to Rs. 30000/- for single payment & Rs. 75000/- for whole year w.e.f. 01-07-2010

Thanx Mr. Ritesh Kothari for the Information

Thank u Friends for ur reply................... there is no contract entered between the company and the caterer so how can we deduct TDS under sec 194C.......The actual position is this that the caterer offers refreshments to the company Employees in the evening on the order daily placed by the company but the payment to that person is made on monthly basis.........

There is a circular regarding this -"TDS is not required to be made when payment is made for serving food in a restaurant in the normal course of business of the restaurant. [Circular No.715 dt.8-8-1995]."- Now Friends what r your comments on this........


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