Section under tds act

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Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2012 I have to purchase a product from a govt. company located in city another than my business place. I will pay the total cost to that company directly. A person, other than me and my employee, will take care of loading and delivery of goods. I will pay that person as per trucks loaded say rs 400 per truck. freight of trucks will be paid by me. This will be under CONTRACT WORK or COMMISSION WORK with me? TDS section applicable ?? i.e. 94C or 94H

CA Rakesh Goenka

CA Rakesh Goenka (Expert)

09 April 2012 TDS will be deducted u/s 194 C. okay...................

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

10 April 2012 You have mentioned about two types of businesses and every business have a different section under which TDS is to be deducted. If you buy the product just as a customer then no TDS is required to be deducted but if it is under contract then Section 194C will apply but if you are acting as commission agent then Section 194H will apply.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)

10 April 2012 As you have mentioned that you will give Rs. 400 per truck loaded, if you will pay that amount as contract then sec. will 194C or if its consider as commission then sec. 194H will apply

other than these for Freight Expense no TDS will apply