Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2013 Contract given for Supply of Packing Material with Company Name/Brand Name/Logo printed on the packing material. And invoice raised by the supplier of packing material with Excise and VAT collected. Whether TDS applicable or not. Kindly advise

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 December 2013 if the case falls under works contract and raw material is supplied then sec 194C is applicable.

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Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2013 i have not deduct tds in last year then now what to do.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 For your query about **TDS on supply of packing material with company name/logo printed**:

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### 1. Applicability of TDS:

* If the contract **includes only supply of goods (packing material)** — usually **no TDS under Section 194C** as it is for contracts for work.
* If the contract is **a works contract**, i.e., supply of goods along with some services like printing, fabrication, or installation, then **Section 194C (TDS on contract payments) applies** on the entire amount (excluding VAT and Excise).
* Excise and VAT are **not subject to TDS deduction**, as they are government levies.

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### 2. What if you did not deduct TDS last year?

* Ideally, TDS should have been deducted **at the time of payment or credit** during the last financial year.
* Since it was not deducted, you should:

* **Deduct and deposit TDS now on the payments made** for which TDS was not deducted.
* File a **TDS return for the earlier period** showing the late deduction.
* Be prepared to pay **interest and penalty** for late deduction and deposit under Sections 201(1)/201(1A).
* Inform the supplier about the TDS credit so they can claim it while filing their return.

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### Summary:

| Scenario | Action |
| -------------------------------------------- | ------------------------------------------------------- |
| Contract is only supply of goods | No TDS under 194C |
| Contract is works contract (goods + service) | Deduct TDS under 194C |
| TDS not deducted earlier | Deduct now, deposit with interest & file revised return |

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If you want, I can help you draft the late TDS deposit entry or guide on calculating interest. Need that?

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