TDS on Packing & Printing

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Quick Summary

No TDS is applicable when packing or printing material is simply purchased. However, if packing/printing is done on job work basis under a contract, TDS is applicable under Section 194C only on job work charges and not on material supply portion.

Nitin Kumar

Nitin Kumar (Querist)
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06 November 2009 Dear respected Members,

What is tds applicabilty on Payment to Packing material supplier ?

Thanks
Nitin Kumar

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)
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06 November 2009 Dear Nitin
if Packing Materials are ur Trading Goods then there is no TDS on buying & Payment of such materials.
However if these are not Trading Goods then TDS u/s 194C (i-e Payment to contractor) is applicable

Deepak Goel

Deepak Goel (Expert)
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07 November 2009 If you have given a contract for packing including packing material the TDS is applicable u/s 194C but if you are purching only packing material then there is no TDS applicable.

CA Deepak S

CA Deepak S (Expert)
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07 November 2009 No TDS on payment to packing material supplier.

Rahul Vora

Rahul Vora (Expert)
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07 November 2009 If you are purchasng the packing material outright (i.e. there is no job work involved) than no TDS is applicable. If you have given the manufacturing of packing material on jobwork (i.e. raw material is being supplied by you to the jobworker) than TDS u/s 194C is deductible

GSTP Hari Dhayalan Konar

GSTP Hari Dhayalan Konar (Expert)
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07 November 2009 agree with rahul. getting packing material there is no TDS. If you getting Service of packing material job workers then you have deduct tds as per 194C. ( 2% or 1% alongwith cess)

Nitin Kumar

Nitin Kumar (Querist)
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07 November 2009 Respected sirs,

Supplier's printing process involves job work. (Manufacturer of Printed carton & labels)

Thank You,
Nitin Kumar

Rajkumar Maheshwari

Rajkumar Maheshwari (Expert)
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07 November 2009 TDS will be attract only when you are Giving Job Work With Raw Material to complete the Job. That means on Only Job Work Charges TDS will be Deduct. & If you are not giving Material to complete the Job or Material is also providing by supplier then in this condition No TDS Will be Deduct on Job Work Charges.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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08 November 2009 The provision explained by Mr.Rajkumar is w.e.f 01/10/2009.
Before that tax has to be deducted on the entire amount vide answer to question 15 of circular 715 reported in 215 ITR (St) 15 and circular 13 dated 13/12/2006 reported in 287 ITR (St) 174.

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