TDS applicable or not

Page no : 2

CA. Anubhav Jaggi (CA) (104 Points)
Replied 12 October 2011

TDS is not applicable on purchase of stationary, even if by way of contract.

But if stationary is purchased after some printing or work on it, then TDS is applicable. eg. Printing of Letter Heads.

Upgrade to CAclubindia Pro. Subscribe Now!

Ashutosh Biswal (Asst.Manager Finance) (283 Points)
Replied 12 October 2011

In my Previous commment , i was used the term TDS infact it is TRS (Tax recovery at source) and all the remaing explanantion given by me was best to my knowledge and i stand on this ...

your valuable comments are welcome to table..

CA Mohd Anas (In Job) (56 Points)
Replied 12 October 2011

No TDS Deducted

amit jain (Chartered Accountant) (532 Points)
Replied 12 October 2011

tds is for only services received and not for purchases

Batul (Article assistant) (207 Points)
Replied 12 October 2011

TDS is not applicable

Upgrade to CAclubindia Pro. Subscribe Now!

shanil jain (CHARTERED ACCOUTANCY) (60 Points)
Replied 12 October 2011

TDS is not to be done on purchases but on contract of work u/s 194C.

but be carefull that if u are paying the vendor for printing letter heads then the transaction can be covered under the ambit of TDS provisions.

But in that case if the vendor specifies the printing rates separately in the bill and the material purchased, then TDS liability on the printing part arises, subject to the limits u/s 1194C.

hope that might help u.. :)

Yash Anandkumar Mandavia (Practising Chartered Accountant) (184 Points)
Replied 13 October 2011

Dear Vijaybhai,

As per your query, am not able to get whether the same is in the nature of purchase or you are consuming the same in your business. If the transaction is in the nature of purchase, TDS u/s 194C is not required to be deducted, but if you are consuming the same, i.e. in other words, if you are using it as material, than I suggest to deduct the same u/s 194C....