Tds applicability on the purchase of diary
This query is : Resolved
08 May 2015
Dear Expert,
Our company had purchased Diaries with printed company Name & Logo. If we make payment after deducting TDS U/s 194-C ?
Regards,
Harish Bhardwaj
Our company had purchased Diaries with printed company Name & Logo. If we make payment after deducting TDS U/s 194-C ?
Regards,
Harish Bhardwaj
11 May 2015
yes you should deduct TDS in such cases...
Message likes :
1 times
11 May 2015
Ok Sir,
Thank u very much
Harish Bhardwaj
Thank u very much
Harish Bhardwaj
11 May 2015
Sir,
A Drycleaner (as an Individual) cleans our office furniture & raise Invoice in the name of our company. My question is that if it is falls under Service Tax Reverse Charge Mechanism ?
Regards,
Harish Bhardwaj
A Drycleaner (as an Individual) cleans our office furniture & raise Invoice in the name of our company. My question is that if it is falls under Service Tax Reverse Charge Mechanism ?
Regards,
Harish Bhardwaj
11 May 2015
Dear Expert,
A Book Binder (as Individual) binds our official books & raises invoices in the name of company. My question is that if is it covered under Service Tax Reverse Charge Mechanism ?
Regards,
Harish Bhardwaj
A Book Binder (as Individual) binds our official books & raises invoices in the name of company. My question is that if is it covered under Service Tax Reverse Charge Mechanism ?
Regards,
Harish Bhardwaj
27 July 2025
Hey Harish, thanks for the questions! Let me help clarify both the **TDS on purchase of diaries** and the **Service Tax Reverse Charge Mechanism (RCM) on services by individuals like dry cleaners and book binders**.
---
### 1. **TDS Applicability on Purchase of Diaries**
* When your company purchases **diaries with printed company name & logo**, the payment is essentially for **goods**, not services.
* However, if the diaries are printed by a **contractor or vendor** who also provides services (like printing and supplying), this is generally treated as a **contractual work**.
* Under **Section 194C (TDS on payments to contractors)**, TDS is applicable on payments to contractors for carrying out any work (including supply of labor for carrying out work).
* Printing diaries involves **work contract** services; thus, **TDS u/s 194C is applicable**.
* So, yes, you should **deduct TDS under Section 194C** while making payment to the vendor who supplied printed diaries.
---
### 2. **Service Tax Reverse Charge Mechanism (RCM) on Dry Cleaner and Book Binder**
* **RCM on service tax** applies when services are received from specific categories of service providers.
* Services from **individuals or sole proprietors who are not registered under Service Tax** often attract RCM, where the recipient (your company) is liable to pay service tax.
* **Dry Cleaner (individual):** Cleaning services for office furniture is a taxable service under service tax law. If the dry cleaner is unregistered, then **RCM applies**, and your company must pay service tax.
* **Book Binder (individual):** Binding books is also a taxable service under service tax. If the binder is unregistered, **RCM applies** on your company.
* In both cases, check if the service provider is **registered or not**.
---
### 3. **Summary**
| Transaction | TDS Applicability | Service Tax RCM Applicability |
| -------------------------------- | ----------------------------------------------------- | -------------------------------------------------- |
| Purchase of printed diaries | Yes, under Section 194C | No (purchase of goods, not service) |
| Dry cleaning of office furniture | Depends if service provider invoices (usually no TDS) | Yes, if dry cleaner unregistered under service tax |
| Book binding of official books | Depends (if contractor - possible 194C) | Yes, if binder unregistered under service tax |
---
### 4. **Additional Notes**
* For **TDS on dry cleaning or book binding services**, if the individual/vendor is providing **service** and is not registered under GST (now replacing service tax), TDS under Section 194C or 194J might apply depending on nature of service.
* With GST replacing service tax, current provisions have changed — so check if GST TDS applies under relevant GST provisions.
---
If you want, I can help draft precise TDS and service tax/ GST notes for your internal use.
Would you like that?
---
### 1. **TDS Applicability on Purchase of Diaries**
* When your company purchases **diaries with printed company name & logo**, the payment is essentially for **goods**, not services.
* However, if the diaries are printed by a **contractor or vendor** who also provides services (like printing and supplying), this is generally treated as a **contractual work**.
* Under **Section 194C (TDS on payments to contractors)**, TDS is applicable on payments to contractors for carrying out any work (including supply of labor for carrying out work).
* Printing diaries involves **work contract** services; thus, **TDS u/s 194C is applicable**.
* So, yes, you should **deduct TDS under Section 194C** while making payment to the vendor who supplied printed diaries.
---
### 2. **Service Tax Reverse Charge Mechanism (RCM) on Dry Cleaner and Book Binder**
* **RCM on service tax** applies when services are received from specific categories of service providers.
* Services from **individuals or sole proprietors who are not registered under Service Tax** often attract RCM, where the recipient (your company) is liable to pay service tax.
* **Dry Cleaner (individual):** Cleaning services for office furniture is a taxable service under service tax law. If the dry cleaner is unregistered, then **RCM applies**, and your company must pay service tax.
* **Book Binder (individual):** Binding books is also a taxable service under service tax. If the binder is unregistered, **RCM applies** on your company.
* In both cases, check if the service provider is **registered or not**.
---
### 3. **Summary**
| Transaction | TDS Applicability | Service Tax RCM Applicability |
| -------------------------------- | ----------------------------------------------------- | -------------------------------------------------- |
| Purchase of printed diaries | Yes, under Section 194C | No (purchase of goods, not service) |
| Dry cleaning of office furniture | Depends if service provider invoices (usually no TDS) | Yes, if dry cleaner unregistered under service tax |
| Book binding of official books | Depends (if contractor - possible 194C) | Yes, if binder unregistered under service tax |
---
### 4. **Additional Notes**
* For **TDS on dry cleaning or book binding services**, if the individual/vendor is providing **service** and is not registered under GST (now replacing service tax), TDS under Section 194C or 194J might apply depending on nature of service.
* With GST replacing service tax, current provisions have changed — so check if GST TDS applies under relevant GST provisions.
---
If you want, I can help draft precise TDS and service tax/ GST notes for your internal use.
Would you like that?
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
- Transport service POS
- GSTR 9C- Table 9
- E INVOICE, E-WAY, INVOICE
- To Whom the Invoice should be Raise to
- INCOME TAX NOTICE QUESTION
- Whether to file ITC 03 for downward GST rate revision - Reg.
- Need Conversion process of CA Proprietary firm to CA Partnership Firm
- Capital gain on sale of resident house by non-resident Indian
- Query Regarding Error in Establishing Connection with Traces WebSocket eSigner
- When was the effective CA partnership deed? Can I use old FRN until new FRN alloted by ICAI?
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
- Filing GST Returns after death of proprietor
- Registered Required in GST Act
Trending Online Classes
-
Live Course on GSTR 9 & 9C for FY 24-25(Detailed discussions, FAQ, Case studies and Live demo of GSTR 9/9C on GST Portal)
Industry Expert16 November 2025
CAclubindia
