LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Tds query

Praveen Kumar Agarwal (Accountant) (180 Points)

15 September 2012

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?

Reply
Follow
Share

4 Replies

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 15 September 2012

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.

Praveen Kumar Agarwal (Accountant) (180 Points)
Replied 15 September 2012

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..

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 16 September 2012

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.