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

Finance Officer

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.

CA Final

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

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.

CA in Practice



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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