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TDS Deducted on Supply and installation of UPS

This query is : Resolved 

07 August 2008 Dear sir,

We have placed a purchase order of UPS to a vendor in which the conditions are :

1.Excise Duty @ 16.48% & VAT @ 4%
2.Payment : 30% against PO , 60% against Delivery & 10% against installation.

My question is whether the TDS should be deducted on the same or not ?

Kindly help asap .

And supporting circular would be of great help.

Thank's in advance.....

07 August 2008 No TDS provision will not be applicable on the purchase of UPS as it is pure purchase of material. For reference you can check tds provision for details.

Raj (Expert)
08 August 2008 if you have works contract agreement then only TDS is applicable.

08 August 2008 This is purely a purchase transaction and tax at source is not deductible.


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