Signboards in front of shops
This query is : Resolved
04 August 2012
Hi
Our Company has contracted with some group to make glow sign boards with name of our company and has asked them to supply it to some shops that sells our products(to be put up as hoarding in front of their shop).
My question is, when there is material involved, when contractor is charging us vat without bifurcation between material and labour charges, all the material are purchased by the contractors themselves.
IS the transaction liable to TDS?? any relevant circular or notification i can refer to?
Our Company has contracted with some group to make glow sign boards with name of our company and has asked them to supply it to some shops that sells our products(to be put up as hoarding in front of their shop).
My question is, when there is material involved, when contractor is charging us vat without bifurcation between material and labour charges, all the material are purchased by the contractors themselves.
IS the transaction liable to TDS?? any relevant circular or notification i can refer to?
04 August 2012
You have to deduct TDS @ 1% on the Gross Bill amount raised by the contractor.
.
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04 August 2012
Thank you sir,
But on What basis, can you give me any circular or notification.
Our company of contention that as most part of the expense is for material and material being arranged by contractor themselves, it may be taken as contract for sale of goods, than contract for work
Does the stand hold good?
But on What basis, can you give me any circular or notification.
Our company of contention that as most part of the expense is for material and material being arranged by contractor themselves, it may be taken as contract for sale of goods, than contract for work
Does the stand hold good?
04 August 2012
Please refer Circular No 715 Dated 08.08.1995.
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The argument may be given by the contractor, not by the contractee.
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You have to pay either way but the first thing is to keep yourself in the safest position.
.
.
The argument may be given by the contractor, not by the contractee.
.
You have to pay either way but the first thing is to keep yourself in the safest position.
.
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04 August 2012
Thank you sir
I had referred Cir 715, it sayd putting up of hoarding is applicable to 194c or 194I depending on situation as said there.
So reading between line, we can conclude that putting up a hoarding through contract being advertisement contract is liable to TDS, immaterial of fact if material is supplied by contractee or arranged by contractor.
I had referred Cir 715, it sayd putting up of hoarding is applicable to 194c or 194I depending on situation as said there.
So reading between line, we can conclude that putting up a hoarding through contract being advertisement contract is liable to TDS, immaterial of fact if material is supplied by contractee or arranged by contractor.
04 August 2012
The work assigned to the contractor, by whatever name you call it, is similar to putting hoardings. In our case, payment is being made to the contractor so 194C only will apply to us.
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