Tds applicability on the purchase of diary

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HARISH BHARDWAJ (Querist)
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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

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 May 2015 yes you should deduct TDS in such cases...

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HARISH BHARDWAJ

HARISH BHARDWAJ (Querist)
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11 May 2015 Ok Sir,

Thank u very much

Harish Bhardwaj

HARISH BHARDWAJ

HARISH BHARDWAJ (Querist)
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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

HARISH BHARDWAJ

HARISH BHARDWAJ (Querist)
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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

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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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**.

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### 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.

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### 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**.

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### 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 |

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### 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.

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If you want, I can help draft precise TDS and service tax/ GST notes for your internal use.

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