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Tds query
An individual is providing fooding in a college canteen to all the student of that college. And that fooding expenses is borne by college. shall the college deduct tax when payment is made to that indvidual against fooding expenses?? If yes then under which section and at what rate?
Replies (4)
If there is a contract then TDS needs to be done @ 1% u/s 194C. However if the income of the individual is below the taxble limit then he shud submit a declaration & then in that case TDS need not be made.
bt we can see this case in such a way that we r buying foods from that individual.. Then i dnt think it shud attract any liability to deduct tax..
if the term "purchase of goods( food items)/ under direct expenses" is confirmed with the accounting method applied by institute, then NO TDS, but i doubt about the same, as they will book the same under indirect expenses, and would get liable for TDS.
Thnx for ur clarification.. @ U.S.Sharma
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