Deduction ofTDS on Tea , Snacks expenses paid alongwith 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 advice.

 

Regards

Pradeep Jain

7828434162

 

[CS Swati D Rawat]

If it is part of Rent Agreement TDS u/s 194I is leveid

If is not under part of Agreement
1. No TDS if its on reimbursement basis
2. If Not then under Section 194C.

 You have to deduct tds if one bill is more than 30000 or in a year total expenses on tea n snacks is more than 75000 then you have to deduct tds @ 2% (Section 194C) OR 10% for rent of land and building and furniture & fixtures and 2% for plant and machinery (Section 194I).

[SANJIV KOTHARI]

 

Dear

 Since services are provided outside the hotel and service provider would be charging service tax on some portion of billing , hence TDS should be deducted.

AI Summary

Company Debating TDS Deduction on Rent-Related Services: Section 194I vs. Section 194C Guidance Offered A company renting office space in Kolkata is deducting TDS on rent payments. They are also paying for tea, snacks, and lunch services provided by the landlord and seek advice on whether TDS should be deducted for these expenses. One response suggests that if these services are part of the rent agreement, TDS under Section 194I applies. If not, TDS under Section 194C applies if expenses exceed certain thresholds. Another response advises deducting TDS because service tax is included in the billing.