Aftr going through sec-194C & circular no.715 dated 8-8-1995 which has been issued in lines of decided case law Associated Cements Ltd. I have the following conclusion:
1-
The provisions of section 194C shall apply to all types of contracts for carrying out any
"
work" including, transport contracts, service contracts, advertisement contracts,
broadcasting contracts, telecasting contracts, labour contracts, material contracts and
works contracts.
Explanation III to Section 194C(2)
For the purposes of this section, the expression
"work"
shall also include "Catering" .
2-Payments to restaurants/cafes - TDS is not required to be made when payment
is made for
serving food inside a restaurant in the normal course of running
of the restaurant/cafe
-Circular : No. 715, dated 8-8-1995
3-But if it is for an arrangement for specific person on a special request wchich can be termed as contract as contract includes oral contract as per indian contract act 1872 , so TDS in this situation need to be deducted.