18 July 2011
hello, dear sirs, please read carefully my difficulty,
the company who manufacture the laminated sheet and purchase corrugated box from other party and also give specification for print of company logo on box. from the bill of box we can't clarify that how much material amount and how much job work amount then what is the responsibility for TDS u/s 194c?
19 July 2011
As monoj has pointed out the facts of the case is very important. The issue to be addressed is when is the title of goods get transfered. If the order is only for manufacturing and selling the corugated boxes where the supplier of the boxes purchases the material, prints, manufactures and then sells. It is a sale transaction and there is no works contract involved in it to invoke sec.194C. There are lot of high court decision which supports this point.
The recent SC judgement in the case of silver oak laboratories Pvt. Ltd v. CIT,XVII Delhi had held that when there is excise duty paid on manufacture and the goods are sold it cannot attact 194C.
The other citations (mostly relates to packing material) are also given below for reference and can be relied upon. Ø CIT V Glenmark Pharmaceuticals Ltd. 2010-TIOL-HC-Mum-IT = Ø CIT V Girnar Food and Beverage P. Ltd. [306 ITR 23] Ø Venbro Polymers V ITO, TDS Range-II, Erode - Mds HC (unreported) – WP 39037 of 2005 Ø BDA Limited V. ITO (TDS) Mum HC (2006)281 ITR 99 Ø CIT V. Dabur India Ltd. - Del HC (2005) 198 CTR 375 = 283 ITR 197 Ø CIT v. seagram manufacturing (p) Ltd. HC Del - [221 CTR 509] Ø CIT V. Reebok India Co. HC Del – [306 ITR 124
19 July 2011
If there is Contract in writing then Yes other wise if it is purchased through just an order then No. The facts of the case is very very important as has been stated by other experts.
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