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Tds - on e books purchase

Manesh S (.) (36 Points)

18 August 2011

HI,

Quary - Company "A" as an Education Institute providing Computer Education, Purchase E Books for from Company "B". Company "B" levied Service Tax on Company "A" on Sale price of Books, Is Companny "A" suppose to deduct TDS on payment to Company "B"

Pl guide on the same ....

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CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 18 August 2011

Company B is actually selling something even if it is not in pysical form and TDS is

applicable only if Sec 192-196 if any is applicable.In this case in ma view No tds is

required to be deducted by Comapany A.

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Manesh S (.) (36 Points)
Replied 18 August 2011

Originally posted by : TusharSSampatM.Com CA,CS-FINAL
	Company B is actually selling something even if it is not in pysical form and TDS is applicable only if Sec 192-196 if any is applicable.In this case in ma view No tds is required to be deducted by Comapany A.

If Company A deducting TDS ... They should deduct TDS under which section . becouse Company "A" & Company "B" sign Contract between them self for providing E-Books as and when required .

1 Like

Manesh S (.) (36 Points)
Replied 18 August 2011

If Company A deducting TDS ... They should deduct TDS under which section . becouse Company "A" & Company "B" sign Contract between them self for providing E-Books as and when required .

1 Like

Mihir (Wealth Manager) (5293 Points)
Replied 18 August 2011

Are these E-books in any way altered by Company "B" to fit the specification of Company "A" ?

1 Like

Manesh S (.) (36 Points)
Replied 18 August 2011

No they providing as they have .... they have design there own content

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SRIHARIKALYAN (Ca final) (30 Points)
Replied 18 August 2011

Is B company providing any service to A ? If A company get any professional service from B ,then A company can deduct TDS . But A company purchasing books from B and paying @ of no of books. So it does not amount to sevice. so no tds is required.

1 Like

aneesh (article) (31 Points)
Replied 18 August 2011

According to mine view since company A has enterred into a contract with company B for purchasing books immaterial whether they are to be purchased manualy or electronically.So Company A should deduct TDS at the time of making payment.

1 Like

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 18 August 2011

Originally posted by : Manesh S
	HI, Quary - Company "A" as an Education Institute providing Computer Education, Purchase E Books for from Company "B". Company "B" levied Service Tax on Company "A" on Sale price of Books, Is Companny "A" suppose to deduct TDS on payment to Company "B" Pl guide on the same ....

look into the purchase agreement is it 1) outright purchase or 2) right to download and use ? i hope you will get the route with this difference on the issue ..........

1 Like

Mihir (Wealth Manager) (5293 Points)
Replied 19 August 2011

I am not sure, but this comes under works contract, and so TDS can be deducted u/s 194C.

Let others share.

amit jain (Chartered Accountant) (532 Points)
Replied 19 August 2011

it is sale of books in digital format so how can tds be deducted on sale-purchase contract

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CA.B.Sivakumar (-) (162 Points)
Replied 19 August 2011

Dear Mr.Manesh,

Company A has entered in to a "CONTRACT" with Company B to supply books as and when required.Tha Co B is charging Service Tax while raising the Invoice .

Now a days department is very keen on scrutinizing those expenditure and disallowing it.

Let deduct TDS @ 2% (194C) and issue Form 16A for every quarter.

I do aggree with Mr.aneesh reply.

Roopesh Gangisetty (Article trainee) (176 Points)
Replied 09 December 2014

Dear All,

Please let me know, in case if Such Company not charged ST on it.

U. Thirupathi (CMA) (21 Points)
Replied 18 July 2016

In my Opinon Purchase of E Books, like of Puchase of Softwares no TDS is to be deducted, and we have to Capitalise the same under Intangiable assets and amortised over the estimated useful life of the books.