Hai friends, i had a small doubt about advertising contract...... following is the case .....
We are the retail company, ordering the boxes which contain company logo on it. We are just purchase the boxes.
Is it comes under Advertising contract ?????
It is only purchase of boxes, if u had supplied raw materials to the manufacturer for making particular kind of boxes according to your specification TDS will be attracted u/s 194c.
194C is not attracted.
‘work’ shall include -
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manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer, but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer.
In the case of CIT v. Silver Oak Laboratories P. Ltd. wherein the Hon’ble Supreme Court has held as follows:.
“On examining the terms and conditions and also on examination of the invoices, purchase orders as well as the challans indicating payment of excise duty, we are of the view that there is no material on record to indicate that the transaction in question is a “contract for carrying out works”. Hence, Section 194C of the Income Tax Act, 1961, (~Act’ , for short) is not attracted.
Our attention, in fact, is invited to the amendment in Section 194C of the Act vide Finance (No.2) Act, 2009, with effect from 1st October, 2009, which defines ‘work’ to include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer. In fact, it is clarified that the definition of the word “work’ will not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person other than such customer.
| Originally posted by : |)eep @ k Gupt/\ | ||
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194C is not attracted. ‘work’ shall include - . manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer, but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer. In the case of CIT v. Silver Oak Laboratories P. Ltd. wherein the Hon’ble Supreme Court has held as follows:. “On examining the terms and conditions and also on examination of the invoices, purchase orders as well as the challans indicating payment of excise duty, we are of the view that there is no material on record to indicate that the transaction in question is a “contract for carrying out works”. Hence, Section 194C of the Income Tax Act, 1961, (~Act’ , for short) is not attracted. Our attention, in fact, is invited to the amendment in Section 194C of the Act vide Finance (No.2) Act, 2009, with effect from 1st October, 2009, which defines ‘work’ to include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer. In fact, it is clarified that the definition of the word “work’ will not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person other than such customer. |
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It is Purchase. there is no supply of Materials, also, specification are not given. Therefore, Sec194C is not attracted.
Thanks to all
Here some people are argueing that we are using our company logo on the boxes so its comes under advertising contract.
Is it correct ????
| Originally posted by : Paramesh S | ||
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Thanks to all Here some people are argueing that we are using our company logo on the boxes so its comes under advertising contract. Is it correct ???? |
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Merely affixing logo on boxes doesnt attract sec 194c.
Thanks sam.....
Circular : No. 681, dated 8-3-1994, para 7(vi)(b)
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Where, however, the contractor undertakes to supply any article or thing fabricated according to the specifications given by Government or any other specified person and the property in such article or thing passes to the Government or such person only after such article or thing is delivered, the contract will be a contract for sale and as such outside the purview of this section.
Jusy say those peoples that we are purchasing the boxes and after purchasing we are affixing our logo on the boxes by itself.. now what's the confusion??
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