22 May 2008
Actually we are purchasing water from that particular vendor on monthly basis. But the vendor doesn't charge service tax nor VAT on the same.
1) If the vendor supplies water in packaged jars(For ex: Bisleri, Aquafina,etc) and delivers the same to his customer through some medium of transportation then it would not attract TDS as it is a case of sale of good.
2) If the vendor/supplier supplies water through a water tanker to his customer then it will attract TDS @ 2.266% as it is a case of provision of service (i.e water supply service)
22 May 2008
Pls look into the entire arrangement. In some cases it will be applicable. for example:-
In transportation contracts, there is a stipulation that the contractor will have to sprinkle water to supress dust. Here it is a service contract(Contract for water sprinkling, not for supply of water)
The nature of contract is not clear from your query, as you have made a comparasion between supply of drinking water in packaged form and in loose form.
CAclubindia
