tds

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Rohit Kumar Krishnalal Shah (Querist)
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10 April 2010 I am working in the central govt. department in the account section. When we are purchasing stationery, computers, furnitures etc. we are deducting tds(2% IT and 3% EDU cess on IT) from the suppliers bill amount. Is the said deduction is leagal as per section 194C or any section under IT Act have a provision for such type of deduction.

CA J M Pattanayak

CA J M Pattanayak (Expert)
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10 April 2010 Thats correct

K V Subba Rao

K V Subba Rao (Expert)
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11 April 2010 Please review.

There is no need for affecting TDS on payments made to Suppliers unless the goods purchased are made to meet specific needs of the Buyer.

For instance, if you buy white paper, there is no need to affect TDS because white paper is a product that could be used IN THE SAME FORM by any one

If you get your Company's Letter Heads or Bill Books printed, TDS has to be affected since these are printed to meet your specific requirement.

Further there is no Edu. Cess

CA Kapil B Gupta

CA Kapil B Gupta (Expert)
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11 April 2010 No need to deduct TDS becasue as you mentioned these are not covered in U/s 194C and please refer suggestions given by Mr. KV Subba Rao.