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

AI Summary

TDS Rules Clarified: 10% on Office Rent (Section 194I), 2% on Tea/Snacks/Lunch (Section 194C); Issue Separate Invoices. A query was raised regarding the applicability of Tax Deducted at Source (TDS) on payments for tea, snacks, and lunch provided by a building from which office space is rented. The response clarified that TDS treatment varies: office rent incurs a 10% TDS under section 194I, while payments for tea, snacks, and lunch fall under contracts with a 2% TDS under section 194C, each with specific annual cutoff amounts. Separate invoices should be issued for these services to apply the correct TDS rates.