Tds

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Ch.Siva Nageswara Rao (Querist)
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28 June 2016 Dear Experts My query is

We have purchased a old company . Remodeling that company Some of Fabrication work is doing ,make a payment for fabrication work purpose.
We do not deduct the TDS. TDS applicable on fabrication work.

Please clarify

Thanks & Regards
Siva.

Vipin Garg

Vipin Garg (Expert)
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28 June 2016 Dear Sir,

In my opinion TDS would be applicable under section 194C.

Sec 194C(1) provides that any person responsible for paying any sum to resident contractor for carrying out any work (including supply of labor) in pursuance of a contract between the contractor.

The expression “work” in this section would include— (a) advertising; (b) broadcasting and telecasting including production of programs for such broadcasting or telecasting; (c) carriage of goods and passengers by any mode of transportation, other than railways; (d) catering; (e) Manufacturing or supplying of a product according to the requirement or specification of a customer by using the materials purchased from such customer,

But does not include manufacturing or supplying of a product according to the requirements or specifications of a customer by using the materials purchased from a person, other than such a customer.

A “Contractor” for the purpose of the provisions of this section would be any person who enters into a contract with the Central Government or any State Government, any local authority, any corporation established by or under a Central, State or Provincial Act, any company or any co-operative society for carrying out any work including the supply of labor for carrying out any work.