If we give an order to Stationery Supplier's for suppling the printed materials to us (Material +Labour charges incurred by Supplier). Party is charging Sales Tax (VAT) for the bills raised to us. In turn we are not able to get the VAT Credit, if we are an Manufacturer.
Kindly advise in the above case is it necessary to deduct TDS for this Supplier?
26 April 2010
Income tax need not be deducted on the said matter. Because as per the substituted section 194C,which is prevailing now, the said activity does not come under the definition of 'work'.
CAclubindia
