TDS on advance payment

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Ravindra Kumar (Querist)
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10 January 2011 Sir, we are an NGO based at gwalior,MP.
we have given Rs. 25000 to a printing press for printing of a book. the total cost of printing is around 1 lakh. please let us know whether we have to deduct TDS on advance payment? secondly, also inform rate of TDS and in which section fall....

Regard,

Ravi kumar

9406501655

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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10 January 2011 U/s 194C , you have to deduct TDS on Advance also.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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10 January 2011 If the materil for printing ( paper, ink etc) is not supplied by you to the press and the press owner purchased those materilas from open market, and executed the printing work for you, then it will not be a "work" as per the substitued section 194C ( with effect from 1/10/2009)meaning thereby no need to deduct income tax on the advance / bill amount.

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