TDS ON PURCHASE OF MATERIAL

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This discussion clarifies whether Tax Deducted at Source (TDS) applies to the purchase of printed materials such as brochures, visiting cards, and leaflets. The consensus is that if the supplier provides both the material and the printing service according to your company's design and requirements, it's considered a contract for printing under Section 194C, making TDS applicable. However, if you were simply purchasing blank materials without specific printing services, it might be treated as a standard purchase where TDS wouldn't apply.

CA jignesh daiya

CA jignesh daiya

(Querist)
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30 April 2020 RESPECTED SIR
WE have purchased following material from one party
BROCHER 39,000.00
VISITING CARD 49,800.00
BENEFIT & CHARGHES 25,200.00
ENEVELOP 26,700.00
LETTERHEAD 3,799.74
ROLL UP STENDY (3X6) 29,500.00
STICKER 11,310.00
USER MANUAL 16,500.00
WELCOME LETTER 1,125.00
ROLL UP STENDY(2.5X5) 4,200.00
LEAFLET MULTI COLOUR 27,500.00
Total 234,634.74

whether tds become Applicable on that ?
please advice for the same

RAJA P M

RAJA P M (Expert)
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30 April 2020 Is this all are with Your company name and other company related printings...?!

CA jignesh daiya

CA jignesh daiya

(Querist)
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30 April 2020 yes with name of our company

CA jignesh daiya

CA jignesh daiya

(Querist)
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30 April 2020 for the same we have provided design

RAJA P M

RAJA P M (Expert)
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30 April 2020 Yes... As per Your replies it will be consider as Contract of printing and TDS will be deductible u/s 194C.

CA jignesh daiya

CA jignesh daiya

(Querist)
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30 April 2020 As per clause e
If material not provided by our company
No tds become applicable even if work is done as per our requirement
Then why tds become applicable?

RAJA P M

RAJA P M (Expert)
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30 April 2020 As per above said printings supplier supplied the services with material then it will consider as Contract and TDS applicable...
Also it's not a purchase. The purchase means we going to a stationary shop and buy items in the shop without giving order by we....

CA jignesh daiya

CA jignesh daiya

(Querist)
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30 April 2020 Whether tds become applicable for purchase of flex ?

RAJA P M

RAJA P M (Expert)
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30 April 2020 Yes if with printing as per Your requirements. (if purchasing blank flex then it can be consider as purchase).

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