Whether sec 194 C applicable for food bills of own canteen m

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Pls advice me on section 194 C:catering

 

In my company we have a guest house . It is maintained under a contract. The contract is for  maintainance of guest house. The contract also specifies that at which rate food items shall be charged by the contractor. Bill is raised seperately for maintainance & Fooding bills. For fooding, utensils and all infrastructure is provided by us and consumables are used by contractor:

My query is that:

1) whether  tds has to be deducted on fooding part under catering category of Section 194 C,

2) can we escape from deducting tax assuming that it is  supply of foods and not a work.

Replies (3)

under section 194C the following contracts are alsoincluded in the scope of “Work”:

 


 
 
1.   Advertising.

 
2.   Broadcasting
and telecasting including production of programs for broadcasting and
telecasting.

3.   Carriage
of goods and passengers by any mode of transport other than Railways.

4.  Catering.


So you need to pay tds. Guest house is meant for business purpose. So you cannot escape from tds.

Further, the only exemption in catering is - TDS is not required to be made when payment is made for serving food in a restaurant in the normal course of running of the restaurant/cafe.

Dear Sir,

Agree with Vishnupriya,

TDS shall be applicable u/s 194C.

Catering is specifically covered u/s 194C & hence it cannot be escaped.

Rajeev

 

Please note under section 194C catering service is chargeable to tax but we can escape if there is no contract of catering but sale of food and if VAT is charged on same.

 

The charging of VAT makes is a sale contract and no TDS is required on it.

 

I hope it wud be helpfull

 

Thanks and regard

Vivek Agarwal

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