TDS
Querist : Anonymous
Sir,
My query regarding tds deduction on printing work.
One of our client(college)gave print order for printing exam answer book lets by printing his college name on top of book lets. Printer says that it comes under sale of white papers and they also paid vat on that. Our client not deducted TDS.
SEc. 194C definition of work was amended by fin act 2009. a.y 2010-11.
My query is in view of the amended definition of work u/s 194c, is it required to deduct tds on printing bill.
In the case of Annual Maintenance Contract
(AMC), which involves supply of spare parts as well, it has been clarified that the entire amount is exicligible to TDS u/s 194C.
The amended definition relating to exclusion of value of material is not applicable to the instant case.
Querist : Anonymous
If any one had any expert knowledge in this issue please answer.
Swamy.K
Querist : Anonymous
Your query about TDS on printing work is quite relevant.
**Summary of TDS applicability on printing work under Section 194C:**
1. **Definition of “work” under Section 194C (Finance Act 2009 amendment for AY 2010-11):**
The definition of “work” includes “advertisement including the publication of notices, circulars, pamphlets, etc., or supply of labor for carrying out any work.” This also covers **printing and supply of printed materials.**
2. **Material supplied by the printer:**
* If the printer **purchases the raw material (like white paper) themselves** and then prints, the payment for the entire job is considered a contract for work and TDS is deductible under Section 194C on the **full amount** paid to the printer.
3. **Material supplied by the customer:**
* If the **customer supplies the material (white paper)** to the printer, then the value of the materials supplied is excluded from the contract value for TDS purposes.
* In this case, TDS should be deducted only on the **service portion** (printing charges) paid to the printer, not on the material cost supplied by the customer.
4. **VAT paid on materials:**
VAT on paper or materials is separate and does **not affect TDS liability**. Even if VAT is paid, TDS under 194C applies to the contract amount (or service portion if material is supplied by customer).
**In your case:**
* If your client (college) supplied the paper (material), then TDS should be deducted only on the printing charges part.
* If the printer supplied the paper, TDS should be deducted on the full bill amount.
This approach is consistent with the Income Tax Act and CBDT circulars interpreting the scope of “work contract” under 194C.
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**References for your study:**
* CBDT Circular No. 3/2011 dated 14-01-2011 clarifies TDS on work contracts including printing.
* Section 194C and Finance Act 2009 amendment.
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