tds on printing & stationary

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TDS on printing and stationery depends on nature of contract. If it is pure printing work, Section 194C applies with 1% for individual/HUF and 2% for others. However, after amendments, treatment of material supply vs job work must be carefully examined before applying TDS.

Querist : Anonymous

Querist : Anonymous (Querist)

23 January 2010 if paid Rs.170000 on printing & stationary so tds will be applicable or not,if yes than what section applicable & rate & which amount tds is applicable

CA. VIKAS GUPTA

CA. VIKAS GUPTA (Expert)
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23 January 2010 Hi,
if bill is for printing of some item than TDS will be applicable U/s 194C

Chandresh Pitroda

Chandresh Pitroda (Expert)
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23 January 2010 U/S.194C @ 2%. if non-company deductee is there then 1%

CA Prashant Gupta

CA Prashant Gupta (Expert)
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23 January 2010 if bill is only of printing then TDS u/s 194C is applicable. if paid to individual or HUF then rate is 1% in other case it is 2%.
But if material is also included in this i.e. supplier gave you paper and printed as per your instruction then you can take advantage of circular 681 dt 8 march 1994.
para 7(vi) says The provisions of this section will not cover contracts for sale of goods
para 7(vi)(b) says Where, however, the contractor undertakes to supply any article or thing fabricated according to the specifications given by Government or any other specified person and the property in such article or thing passes to the Government or such person only after such article or thing is delivered, the contract will be a contract for sale and as such outside the purview of this section.

So don't deduct TDS then.

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CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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23 January 2010 Special Thanks to CA Prashant Gupta for nice reply.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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23 January 2010 The answer given by Mr. Prashant Gupta is the law prevailing based on the pre substituted section 194C. Through The Finance (No.2) Bill,2009 the then existing section 194C has been substituted w.e.f 01/04/2009 thereby the cited circular had become invalid.

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