TDS u/s 194C applies on Payments for catering services

CIT Vs Saifee Hospital Trust (Bombay High Court) The Assessing Officer held that services of catering rendered by M/s Monginis is technical service and therefore, deduction of tax at source by the respondent has to be under Section 194J of the Act. However, in appeal both the Commissioner of Income Tax (Appeals) (CIT(A)) as well as the Tribunal on facts have come to finding that the services rendered by M/s Monginis of cooking and serving food would fall within the defination of “work” provided under Section 194C of the Act. Thus, the tax has been properly deducted at source by the...