TDS APPLICABILITY
This query is : Resolved
02 March 2021
we gave order to someone to print stickers of our product name( say GIDPC), materials are theirs.
will TDS apply under section 194c
will TDS apply under section 194c
02 March 2021
1)TDS under section 194C is not applicable on printing material as per customer specification, wherein customer has not supplied any material to contractor & contractor has supplied the final product for a price, which is in the nature of contract for sale.
2)In your case contractor purchases the material on his own and applies his labour on such material purchased& Further, the contractor is transferring the title in goods to customer and hence it is outside the purview of section 194C.
Reference : Circular No.13/2006 dated 13.12.2006
Before taking a decision on the applicability of TDS under section 194C on a contract, it would have to be examined whether the contract in question is a ‘contract for work’ or a ‘contract for sale’ and TDS shall be applicable only where it is a ‘contract for work’.
2)In your case contractor purchases the material on his own and applies his labour on such material purchased& Further, the contractor is transferring the title in goods to customer and hence it is outside the purview of section 194C.
Reference : Circular No.13/2006 dated 13.12.2006
Before taking a decision on the applicability of TDS under section 194C on a contract, it would have to be examined whether the contract in question is a ‘contract for work’ or a ‘contract for sale’ and TDS shall be applicable only where it is a ‘contract for work’.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- TDS on Purchase of Immovable Property by NRI from NRI
- Regarding TDS Applicability For Director Remuneration
- FORM 26A APPLICABILITY
- When TDS on GST applied
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
