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TDS on Printing Expenses u/s 194 C

This query is : Resolved 

10 December 2010 Our concern is a Event Mangagement concern. Generally, we give orders to Printing flux, vinyl boards, hoarding & brouchers for our client's events.Then we separately charges for it from our customer in invoice.

Clarification needed:

(i) Whether it comes under contract for sale
or
(ii) comes under contract for work.

Pls clarify me


10 December 2010 As per the amended Sec 194C:

If the material i.e. for boards, hoardings etc is provided by your clients and your concern is only getting them printed and then charging the printing charges to client then the said job work will come under contract liable to TDS u/s 194C.

However, if the material is not provided by the client but arranged by your concern from elsewhere it will be a sale contract.

10 December 2010 One more important thing, in case the material is provided by the client, you need to issue invoice bifurcating the value of material and printing charges since in the other case TDS will be deducted on the consolidated amount itself.

10 December 2010 Undoubtedly agree since well explained in view of the substituted section 194C w.e.f 1/10/2009.

10 December 2010 Thank for your valuable reply


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