Tds

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rahul (Querist)
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19 February 2013 will tds be deducted on flex printing and other hoardings. designs are provided by us. bills raised by the party include vat and no labour portion is specified. the printed material is used as advertisement. any material required is acquired by the party itself and the finished product is delivered as per our specifications. will tds be deducted u/s 194C

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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19 February 2013 No TDS is required since the transaction is a type of Sale purchase

because as per the provision it is required if they are supplying a product according to the requirement or specification of a customer by using material purchased from such customer,
but does not include supplying of a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer.

Therefore No TDS

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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19 February 2013 @ Sourabh is this activity will fall under the expression work?

Is Flex priting will fall under the definition of work?

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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19 February 2013 as per the section

"work" shall include
manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer

so if the material is purchased by the company and is supplied to the party(who prints flex) for working according to their specification then TDS is required (JOB WORK) provided it is not personal exp in nature

Example Tailor Stiching a Shirt is personal for an individual
but for a company it is a job work

rahul

rahul (Querist)
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21 February 2013 thanks a lot sir your advice is quite helpful.

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