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Tds

Dinesh (Student CA Final ) (45 Points)

29 January 2015

please help me solve the following case..

A beverage company enters into a contract with its customer to pay him 20% of goods purchased by the customer on showing of Debit Note. There are no any further conditions. All the customer needs to do is purchase the goods from the company. Is TDS u/s 194C applicable in this case??

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5 Replies

Ram M. Dixit (CA Final (Author)) (376 Points)
Replied 29 January 2015

No, it is not a case of work contract u/s 194C. Hence, in this case, TDS provisions will not apply.

CA Pankaj Kr Agrawal (@Helping Hand) (2143 Points)
Replied 29 January 2015

Dear Dinesh,

Please confirm

is it commission on sales/purchase or just a discount on arrangement of purchases/sales ?

Bharath kumar (Accounts executive) (23 Points)
Replied 29 January 2015

Dear sir ,

what is mean by standard deduction , which is deducted from annual income at the time of TDS calculation

Arif Ali (Apt Co Advisory) (1230 Points)
Replied 29 January 2015

Originally posted by : Dinesh
	please help me solve the following case.. A beverage company enters into a contract with its customer to pay him 20% of goods purchased by the customer on showing of Debit Note. There are no any further conditions. All the customer needs to do is purchase the goods from the company. Is TDS u/s 194C applicable in this case??

I think it is cash back policy.

so not liable to TDS under any section

Arif Ali (Apt Co Advisory) (1230 Points)
Replied 29 January 2015

Originally posted by : Bharath kumar
	Dear sir , what is mean by standard deduction , which is deducted from annual income at the time of TDS calculation

earlier standard deduction was also in case of salary. Now it is only in case of income from house property.

Standard deduction shows that if you have incurred any expenses in earning inome from house property. then those are included here.