TDS ON GLOW Board

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This query is : Resolved

Mandip Bhattarai (Querist)

22 February 2008 Sir,
ABC co is a real estate co. and it made a shopping malls in which there are so many shops which are sold to parties and this co also provide facility like electricty, cleaning, etc.
now when all the shops are sold after that shopkeeprs asked for Glow board(Like sign bord or name of the shops) for all shops and these boards were purhased by ABC co from a supplier that supplier supplies borad of different size and shape for all the shops..
now ABC have to pay that supplier and take mony from all the shops....
now whwn supplier send bill for same it charged VAT due to which ABC is not charging TDS on same as they are saying that it is supply of material...

Question is does ABC have to charge TDS on that supplier bill as it is Job work or not.???

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)

22 February 2008 YES ABC IS REQUIRED TO DEDUCT TDS ON BILL AMOUNT

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

22 February 2008 Check up if the supply of glow board forms part of the (works)contract. If it is then TDS is applicable.

Mandip Bhattarai

Mandip Bhattarai (Querist)

22 February 2008 Sir,
as i called to that supplier he is sayining that they aksed from other supplier from whom our supplier deduct TDS so..
and he is also saying that as we have charged VAT there is no question of Job Work on such bill.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

25 February 2008 I once again invite your reference to my query whether the glow boards were included in the scope of the works contract. If yes, then TDS is applicable. If not, (that is, a mere purchase and sales by him to you) then this is a separate supply contract, nothing to do with the already concluded works contract, and TDS provisions do not apply.

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