TaxTMI 
TaxTMI 
TaxTMI 
An institute has purchased fresh vegetables material for organizing an event. The institute prepared lunch by using labour. Is TDS be deducted on the bill of vegetables while doing payment by another agency.
Vegetables
Mukesh Kumar
TDS not required on vegetable supply, but applicable on labor costs if exceeding threshold under Section 194C. An institute purchased fresh vegetables for an event and prepared lunch using labor. A query was raised about whether Tax Deducted at Source (TDS) should be deducted on the vegetable bill paid by another agency. The response clarified that TDS should not be deducted on the vegetable supply. However, TDS may be applicable on the labor bill for lunch preparation if it exceeds the threshold limit under Section 194C of the Income Tax Act, 1961. (AI Summary)