Tds on photocopy/xerox
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 November 2011
We get photocopy done from a vendor as per our requirement and yearly bill exceess Rs 75000/-. Do we need to deduct TDS and if yes at what rate.
CA PARAS BAFNA
(Expert)
12 November 2011
In this case the Vendor is using his own papers for copying the documents.
.
It can also be presumed that he is purchasing paper from the market and not from your organisation.
.
In Explanation (iv) to the Section 194C, it has been mentioned that work does not include manufacturing or supplying products by using material purchased from a person, other than such customer.
.
So in my view, No TDS requirement has not been prescribed by the law for such transactions.
.
However, TDS rate for Individual and HUF contractors is @ 1% , and if you deduct TDS , you will be safer from potential department threats.
.
Please wait for expert's opinion.
.
It can also be presumed that he is purchasing paper from the market and not from your organisation.
.
In Explanation (iv) to the Section 194C, it has been mentioned that work does not include manufacturing or supplying products by using material purchased from a person, other than such customer.
.
So in my view, No TDS requirement has not been prescribed by the law for such transactions.
.
However, TDS rate for Individual and HUF contractors is @ 1% , and if you deduct TDS , you will be safer from potential department threats.
.
Please wait for expert's opinion.
Rajnish Singh
(Expert)
14 November 2011
agreed with paras sir.
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