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tds on packing material

This query is : Resolved 

17 April 2009
We are paying to our Packing material supplyer Rs.150000 p.a.(There is no written or oral contract)

Whether to deducted TDS, what is the rate of TDS?

17 April 2009 TDS not applicable on Sale & Purchase

17 April 2009 If the printed material is according to your specification with your name etc. printed on that, then the printing charges are covered in TDS provisions. IF the supplier is not giving you the saperate bill for material cost and printing charges, then you should deduct TDS on full amount. TDS shall be covered in 194C and rate shall be 2% plus education cess of 3% (effective rate 2.06%)

18 April 2009 If separate labour charges are menioned then tax needs to be deducted otherwise not.

21 April 2009 no tds to be deducted


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