Tds on printing of books

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 May 2014 We are buying Books from Offset Printers they are charging 5% Vat on Bill. Can we deduct TDS while payment bill amount ?

If yes what is the % of TDS ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 May 2014 what is the amount and check whether sec 194C is applicable or not?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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06 May 2014 if not material is provided by you, it would be a sale contract and no tds shall apply.

Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2014 Dear Sir ,
Our Paper Trader providing Paper to the Offset Printer & Offset printer printing Books & supply to us with 5% Vat.
So may I deduct TDS while paying Bill amount & If Yes on Which amount TDS will be Deducted-Basic or Gross bill amount?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 May 2014 in such a case, tds is to be deducted on the gross amount.

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2014 Dear Sir ,

Thanks a ton..

What is the % of TDS & under which section I will deduct TDS ?

Kindly explain.....

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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27 July 2025 Here’s a clear explanation regarding **TDS on printing of books** in your case:

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### 1. **Is TDS applicable on printing of books?**

* If the **printer is providing printing services** (i.e., you are paying for service of printing, and not just buying goods/materials), **TDS is applicable**.
* Section **194C** (Payment to Contractors) generally applies to payments made for works contracts and services related to printing.
* However, if the printer is merely selling printed books (goods), and not providing service, then **TDS is not applicable**.

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### 2. **How to determine if it’s service or sale?**

* Since your paper trader provides paper (material) to the printer, and the printer prints and delivers books, this is typically treated as a **works contract service** (service plus supply of goods).
* In such cases, **TDS under Section 194C is applicable on the gross amount charged by the printer** (including VAT, but VAT can be excluded if separately shown).

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### 3. **At what rate should TDS be deducted?**

* Under **Section 194C**, TDS rate is generally:

* **1%** if the payee is an individual or Hindu Undivided Family (HUF).
* **2%** if the payee is any other person (including companies).
* So, if your offset printer is a company, deduct **2% TDS on the gross bill amount**.

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### 4. **TDS amount calculation example:**

| Particulars | Amount (Rs.) | Note |
| ---------------------- | ------------ | ------------------------------------------------------ |
| Bill amount (Printing) | 1,00,000 | Service + materials |
| VAT @ 5% | 5,000 | Separate VAT on bill |
| Gross amount | 1,05,000 | Amount payable to printer |
| TDS @ 2% | 2,100 | Deduct on gross or excl. VAT (clarify with accountant) |

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### 5. **Important notes:**

* Some experts recommend deducting TDS on **amount excluding VAT** because VAT is a tax collected on behalf of the government, not income to the printer.
* Clarify with your accountant whether to deduct TDS on bill amount excluding VAT or on gross amount including VAT.

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### Summary

| Aspect | Details |
| ------------------ | ----------------------------------------------------------- |
| TDS applicable? | Yes, if payment is for printing service (works contract) |
| Applicable section | Section 194C |
| Rate of TDS | 1% for individuals/HUF, 2% for others (companies) |
| Deduction base | Gross amount or amount excluding VAT (preferably excl. VAT) |

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If you want, I can help draft a sample TDS deduction statement or provide more references on this. Would that help?

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