Tds (urgent)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2012 Dear All,

i have a very urgent query as per my senior accountant he say, if our contractor provide services so we can deduct tds in his bill amount, but if he sold goods to us so we are not liable to deduct tds u/s 194, can he right?, because our stationer provide stationary so we cant deduct tds, but when printing our visiting card we deduct tds. so pls resolve my query

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 April 2012 Yes he is right.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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15 April 2012 Yes, your senior is right.
Refer Sec 194C for more details.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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16 April 2012 TDS is not applicable for sale of goods transactions, it is applicable for sale of services only.

However,there is only one possiblity u/s 194C to deduct TDS even on sale of goods.

194C is applicable to contractors who carry out any work and there is involvement of service and goods both.
So, the Govt by vivisecting the service element involved therein make liable the person to deduct the TDS at lower rate(2%/1%) otherwise it is very high in other cases.

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2012 Thanks all of your for Resolve my Query and Given Me Your Golden Suggation.

Warm Thanks

Nitesh Namdev

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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16 April 2012 Yes all the experts are correct including your senior.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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16 April 2012 Dear Mr. Agarwal,

You do need to ratify the correctness of the answers of the experts if you have a different view/opinion then you are welcome.

Thanks & Reagrds
Amit Kedia

CA PARTH SHAH

CA PARTH SHAH (Expert)
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23 April 2012 IF THE BILL CONTAINS BOTH SALE OF GOODS AND LABOUR CHARGES THEN TDS HAS TO BE DEDUCTED ON LABOUR PART IF BOTH ARE SEPERATELY MENTION IN THE BILL.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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23 April 2012 This is not a risk free view unless Mr. Parth Shah include one condition.
.
The condition has been prescribed as
-The goods part should have been supplied by the said customer to the contractor.
.
Section 194(c)(3), has thus limited application in reference to sub-clause (3) of clause (iv) of the Explanation to Section 194C.

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