|Assessee-hospital availed catering services from Monginis Hospitability Services Pvt. Ltd. It deducted tax at source under section 194C while making payments to Monginis Hospitability Services Pvt. Ltd.|
|Assessing Officer (AO) held that services of catering rendered by Monginis Hospitability Services Pvt. Ltd. were in nature of technical services and therefore, deduction of tax at source by assessee had to be under section 194J.|
|On appeal, the Commissioner (Appeals) as well as Tribunal came to finding that services rendered by Monginis Hospitability Services Pvt. Ltd. of cooking and serving food would fall within definition of ‘work’ provided under section 194C and thus, tax had been properly deducted at source by assessee.|
|Aggrieved-revenue filed the instant appeal before the Bombay High Court. The Bombay High Court held that the concurrent finding of fact rendered by the CIT(A) and the Tribunal that service of cooking didn’t include any technical service, was not shown to be perverse.|
|Therefore, no fault could be found with the impugned order of the Tribunal. Therefore, appeal did not give rise to any substantial question of law.’|
Payment made for catering services is liable for deduction of TDS u/s 194C.
Prakhar Kalani (B.Com, ACA, DISA), Partner at Kalani Gattani & Co. Prakhar Kalani is a Qualified Chartered Accountant . contact him @ firstname.lastname@example.org