TDS

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M (Querist)
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03 June 2010 TDS is applicable on printing jobs or not. I got printed so many format like Leave Card, Job Work Challan, Attendence Card which amounting Rs. 75000.00 throughout the year. No contract is being made with the printing press and they are raising bill with CST.

Pl. reply at the earliest

kantijain

kantijain (Expert)
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03 June 2010 Dear M,

TDS is applicable on printing jobs as it falls within the meaning of work specified in explanation to sec 194C:
The relevant extract from act is as follow:

"(iv) “work” shall include—
(a) advertising;

(b) broadcasting and telecasting including production of programmes for such broadcasting or telecasting;

(c) carriage of goods or passengers by any mode of transport other than by railways;

(d) catering;

(e) manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer,

but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer."

However sec 194C(4) provides that "No individual or Hindu undivided family shall be liable to deduct income-tax on the sum credited or paid to the account of the contractor where such sum is credited or paid exclusively for personal purposes of such individual or any member of Hindu undivided family."

If the payment is for non-business/profession purpose than no need to do TDS.