Vegetables

[Mukesh Kumar]

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.

[YAGAY and SUN]

TDS cannot be deducted on supplies of Vegetables for organizing an event but on Labour Bill for preparation of Lunch, TDS may be deducted, if threshold limit is cross under the provision of 194C of the Income Tax Act, 1961 as amended from time to time.

AI Summary

TDS on contract payments: no deduction for vegetable supplies; deduction applies to labour services under contract payment rules. TDS is not deductible on payment for supplied vegetables treated as goods; TDS may be deductible on the labour or contract portion for lunch preparation if the payment exceeds the statutory threshold for withholding on contract payments.