Tds

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If I have a contract with the supplier in India to supply the good in special economic zone of India. Am I liable to deduct TDS under 194c while making payment?
Replies (9)
manufacturing or supplying of a product according to the requirements or specifications of a customer by using the materials purchased from customer comes under the definition of 'work' liable to tds u/s 194C of Income tax act,1961 if single payment to such person is more than Rs.30K or where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds Rs.1Lakh. This provision applies to SEZs too as no exception is provided for them in the section.
So, decide in the light of above provision.

Thanks a lot

Thanks a lot

applicable only if it is specialized goods as per your requirements which is not available in general

Vessels and tanks are being manufactured for customers as per their requirements like size shape etc... Then in that case is TDS applicable?

then it's works contract 194-C

So TDS will be deducted?

Yes @ 1% for Individuals, 2% for others

Thanks a lot


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