Tds

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This query is : Resolved

Gopal Joshi (Querist)

17 April 2014 Is TDS applicable if we order to a printing press for print some brochures, pamphlets etc as per our specification and they charge VAT on whole amount?

Sandeep Dharar

Sandeep Dharar (Expert)

17 April 2014 Yes TDS should b attracted if it crosses the limit u/s 194C.

Gopal Joshi

Gopal Joshi (Querist)

17 April 2014 Ok sir. Please can you give me a logic that VAT is applicable only on sale of goods then is TDS right on purchase.

Sandeep Dharar

Sandeep Dharar (Expert)

17 April 2014 It is not a purchase. If u r ordering to the printing press to print for u some vouchers & other official doc.s then it is alike a contract. Purchase is the thing when u directly purchasing from the Printing press. So TDS is applicable here(if only it crosses the limit prescribed u/s 194C & materials not provided by u)

Gopal Joshi

Gopal Joshi (Querist)

17 April 2014 ok sir, please clarify one more thing on which amount we'll deduct TDS

Contract cost (1,00,000 * Rs. 0.75) = 75,000
VAT = 3750

TDS is charge including VAT or excluding VAT.

one more thing that if he charge VAT, is this right?

Sandeep Dharar

Sandeep Dharar (Expert)

17 April 2014 TDS will b on gross amt. (Excluding VAT)

Gopal Joshi

Gopal Joshi (Querist)

17 April 2014 Thanx a lot for your info.

Sandeep Dharar

Sandeep Dharar (Expert)

17 April 2014 K ur welcome friend

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