LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Tds on consumable purchase

sebin (B.Com) (36 Points)

26 August 2016

Our company doing two wheeler sales & service. we are purchasing some consumables like scrap cloth, waste oil, paint etc. We need to deduct TDS against the consumble payment, if not pls provide the notification/ circular

Reply
Follow
Share

3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 26 August 2016

Consumables attract VAT, and is not liable for any TDS.

sebin (B.Com) (36 Points)
Replied 27 August 2016

Thank you Sir. Actually our auditor instructed us to deduct the TDS against consumables.

If you have any notification/ circular please provide.Beacuse we can solve this issue.

I am looking forwarded to hear from you.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 27 August 2016

Well, if Auditor is asking to deduct TRS (applicable in some states, as tax recovered against VAT); then he is right.

But if it is TDS, I am forwarding following link, where in High court has assertained non-deduction of TDS for consumables. the extract is as follows:

"""In view of the above, we held that the provisions of section 194J were not applicable to the assessee company.

15. Regarding applicability to section 194C, we observe that individual payments were not exceeding Rs.50,000/- and, therefore, provisions of section 194C are also not applicable."""

https://indiankanoon.org/doc/191755224/ case of Amit Deep Motors, New Delhi vs Department Of Income Tax on 22 October, 2010