tds on purchases of printing & stationery

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2009 In case a printing company is placed an order for say 45000/- viz. printing of leaflets, broachres, visiting cards for 35000/- and 10000 for stationery items, on credit basis, while making payment should we deduct TDS on 45000/- and at what percentage and for what items. For general offic purchases worth about less than 2500/- are we to deduct TDS, if so, at what rates

CA Deepak S

CA Deepak S (Expert)
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10 November 2009 If the purchasing company collects Vat on the buill amount raised by them, it's nature is only a contract of sale and you don't have to deduct tax. Otherwise you should deduct tax.

hshivakumar

hshivakumar (Expert)
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10 November 2009 on 35,000/- you have deduct TDS u/s 194C @ 2%

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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10 November 2009 By virtue of explanation (iv) (e) of section 194C, if materials are not supplied to the printing company, TDS provisions does not attract to the said deal.

G.Ramesh

G.Ramesh (Expert)
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10 November 2009 Agree with Mr.Deepak & Mr.Warrier, If vat not collected on the bill, then it is contract payment and TDS will be deducted on total amount of Rs.45000/- @ 1% if individual,2% if company...The contract exceeds Rs.20000/- TDS will be deducted, if the cumulative contract bills crossed 50000/- and above also TDS applicable