Deduction of TDS from the payment to a Rehri wala etc.

[Guest]

FOR WORKERS & STAFF REFRESHMENT WE R TAKING THE TEA & SNACKS FROM REHRI WALA & PAYING AMT. 10K/MONTH & THEY HV NO PAN NO. PLS CONFIRM IS IT LIABBLE TO DEDUCT TDS.

AI Summary

TDS Not Required for Tea and Snacks Supply as It's a Sale of Goods, Not a Service: Section 194 Explained. A query was raised regarding whether Tax Deducted at Source (TDS) should be deducted from payments made to a vendor without a PAN for supplying tea and snacks, amounting to 10,000 INR per month. The response clarified that TDS under Section 194 is applicable to service contracts, not contracts for the sale of goods. Since the arrangement involves the purchase of goods (tea and snacks), TDS is not required. The reply referenced a Supreme Court judgment in Associated Cement Co. Ltd. v. CIT to support this interpretation.