Tds on sodexo

Hi

 

My Question for today is, We all know that we have to deduct TDS on payment to Sodexo Food Coupons under sec 194C(ofcourse they do give certificate u/s 197 for nil or reduced deduction, but lets ignore that for this question), now reading section 194C carefully and looking at explanation of work etc in the section

 

What is the type of contract that is being entered with sodexo that section 194C is attracted??? 

Replies (3)

Hello sir,pls let me know how it attracts TDS? Just because we regularly purchase meal coupon from sodexho... What will be the case if we buy food using such sodexo coupons from the hotel near office. Till the time i am of the opinion that Sodexo is subject to TDS only on Service Charge if it cross the limit of 75000 or 30000 under 194C. Because value of coupons is like buying food....even they will also pay the amount against such coupons when they receive such coupons from the hotels. As if they mention value of meal coupons & service charge separately. Even they charge Service tax only on Service charge. Pls guide if my view is wrong...

I think TDS is applicable on whole invoice value. Value of coupons can not be treated as material. Only material value can be subtracted from the bill.

Hi 

As per Sec 194 C, Any person responsible for paying any sum B to any resident contractor for carrying out any work is required to deduct tax at source. Now if it can be established that the coupons provided by Sodexo constitue 'work' as defined in sec 194 C, then TDS will have be deducted on the gross amount as is evident from the wordings of Sec 194 C (any sum).

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