TDS on food supply services

[Rajat Singhania]

Dear Members,

Please share your views as to whether TDS needs to be deducted on food supply services provided by an Individual to an institution under 194C. There is no written contractual agreement between both the parties and the supplier issues monthly bills to the Institution without charging any GST.

[KASTURI SETHI]

Dear Querist,

TDS under Section 194 C of the Income Tax Act is different than TDS under GST Acts. Both Acts are independent. TDS under GST has been deferred up to 30.9.2018.

[YAGAY andSUN]

Contract/agreement may be either expressed or implied.

[DR.MARIAPPAN GOVINDARAJAN]

This is a case of implied contract.

[Ganeshan Kalyani]

In my view, TDS is applicable.

AI Summary

TDS under Section 194C may apply to food supply services where an implied contract exists despite no written agreement. Whether Tax Deducted at Source applies to food supply services by an individual to an institution where no written contract exists, monthly bills are issued and GST is not charged; contributors distinguish income tax TDS from GST TDS (the latter deferred) and treat the relationship as an implied contract, concluding that TDS under the income tax framework would be applicable.