TDS on VAT

This query is : Resolved

Uthpal Nayak (Querist)
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13 February 2010 we have given a contract to printing company for printing paper. He has completed the work and issue a bill with VAT of Rs. 60000/-. we are deducted the TDS on this bill or not ? please advice us as early as possible.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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13 February 2010 W.e.f. 1.10.2009 the following type of contract has also been covered under section 194C.

- Manufacturing or supplying a product according to the requirement or specification of customer by using material purchased from such customer, but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer.

So if the material was not supplied the company making payment then TDS not liable to be deducted u/s 194C.

CA Gangadhar Mishra

CA Gangadhar Mishra (Expert)
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13 February 2010 In my opinion TDS to be deducted since it is coming under a works contract.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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13 February 2010 Yes.it is coming under work contract 194C applicable

Aditya Maheshwari

Aditya Maheshwari (Expert)
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13 February 2010 But work as per section 194C does not include does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer, So how section 194C applicable?

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