Tds on contract for product as per specification

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Ramesh (Querist)
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12 November 2012 Dear All,

Please advise whether TDS is applicable if any product is supplied as per specification of purchaser?

Rgds,
Ramesh

CA Prashant Gupta

CA Prashant Gupta (Expert)
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12 November 2012 if it is only purchase then no TDS
but if there is some work included like stationery items supplied with all details then TDS is applicable.

There is small confusion for some people. like if u purchase bulk item like machine but it is modified according to you. it will be sale not job work.
but when you provide material and then they work on it and return then it is job work

Tax pundit

Tax pundit (Expert)
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12 November 2012 Where the product in question is sold to the assessee-buyer, as per his specifications, then there is no question of applicabliity of TDS u/s 194-C.

TDS issue could arise where the assessee has bought from a person and gets it modified b another. Job work might be involved in the said process and TDS will have to be effected,

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