TDS on Contract

This query is : Resolved

Nagendra (Querist)
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28 August 2010 We have given order for Printing letter heads,vouchers & Bills to job worker.Further we are not providing any papers nor giving any amount as advance for purchase of papers.Job worker purchases the papers & prints according to our specifications.

In such cases is it required to deduct tds u/s.194C

Please answer with the support of Circulars or Latest case Laws.

Arun

Arun (Expert)
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28 August 2010 ITs all depends on how the job worker raises the bill, the situations are as follows,

1. If he bills the material and labour portion separately then TDS applicable on labour portion if Labour charges exceeds Rs. 20000 in single bill (collectively Rs. 50000 in a year).

2. If he raises the bill without any bifercation then TDS will be applicable with reference to the limit specified u/s194c

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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28 August 2010 TDS not deductible u/s 194C in case of manufacture or supply of a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 August 2010 Sec.194 C defines "works" meaning It is provided as per customer requirment by using cutomer materials,so TDS not applicable in provided case

Arun

Arun (Expert)
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30 August 2010 With Effect from 1st Oct 2009 TDS not deductible u/s 194C in case of manufacture or supply of a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer. Since u have not providing the material TDS is not applicable. Sorry for my earlier suggestion

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