TDS on VAT

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This query is : Resolved

Uthpal Nayak (Querist)

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)

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)

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)

13 February 2010 Yes.it is coming under work contract 194C applicable

Aditya Maheshwari

Aditya Maheshwari (Expert)

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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