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

Rajeev Ranjan (Finance Officer) (15 Points)

01 July 2010  

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.