TDS U/S 194C

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This query is : Resolved

tarunjjain (Querist)

25 May 2009 MY CLINET IS DEALING IN SUPPLY OF PRINTING MATERIAL. THE CLIENT IS SALE GOODS TO PARTY AS PER THEIR SPECIFICATION(SUPPLY OF MATERIAL). THE ONE OF THE PARTY DEDUCT TDS @ 2.06 % (194C) AS LOGO (BRAND)OF THE COMPANY MENTIONED ON THE BOX.

WHETHER 194C IS APPICABLE ?

Deepak Agrawal

Deepak Agrawal (Expert)

25 May 2009 Since its the supply of goods, TDS will not be applicable.

CA.BHARAT BHUSHAN

CA.BHARAT BHUSHAN (Expert)

25 May 2009 You deal in supplying the Printing material, hence it is not covered u/s 194C. Using of Brand logo of the company is immaterial

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

25 May 2009 Similar views,expressed by the above experts,are observed in the following decisions.
1) BDA Ltd Vs.ITO 281 ITR 99 (Bom).Decision is, printing of labels as per assessee's specification is transaction of a sale rather than contract and tax deduction is not required.
2) CIT Vs. Dabur India Ltd.283 ITR 197 (Delhi).Here the court said, printing of labels on corrugated board boxes did not require any special skill .The main object underlying was one for sale of goods which took the contract out of the purview of income tax deduction.

Ankur Garg

Ankur Garg (Expert)

26 May 2009 Agree with Experts. On the supply of goods, TDS will not be applicable.

Manikanta Raju CA,CWA,(CS)

Manikanta Raju CA,CWA,(CS) (Expert)

26 May 2009 As per CBDT circular No. 715 dated 8-8-1995 printing of stationery as per customer specification attracts TDS u/s 194C, how ever this circular shall be over ride by the court decisions as given by chakrapani

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