TDS on Tea and Snacks paid along with Office Bldg. Rent

[Pradeep Jain]

We have taken office on rent in Birla Building, Kolkatta on which we are deducting TDS. Now we are making payment of tea and snacks and lunch to Birla Building Limited who is providing these services. Whether we should deduct TDS on the same. Kindly advise.

Regards

 

Pradeep Jain

[Rajendran Natesan]

Hi Pradeep Jain,

      Office Rent is different and Tea , snacks and Lunch is different, for that you need to receive Three Invoices, why because the Treatment of TDS is differ from oneanother..

For Office Rent is 10% - (194I) of Gross amount Exclusind Service Tax ( the cut off amount is 1,80,000 PA)

for Tea and Snacks are coming under Contract  that is 2% 194C (Cut off  amount is Rs.30,000 PA)

For Lunch are also coming under Contract that is 2% on Gross Amount 194C( Cut off amount is Rs.30,000 PA)

I hope this will help you to process your job....

 Thanks

 N. Rajendran

Finance & Account

    

AI Summary

TDS on rent and catering: apply higher withholding for rent and lower withholding for contract food services, get separate invoices. Rent payments are subject to TDS under the rent deduction provision at the prescribed higher rate on gross amount excluding service tax when the rental threshold is exceeded. Payments for tea, snacks and lunch are to be treated as contract service payments attracting TDS under the contract payment provision at the prescribed lower rate on gross amount when the contract payment threshold is exceeded. Obtain separate invoices for rent, catering and lunch to reflect the distinct TDS treatments.