Not sure if TDS deduction is applicable

Raj Malhotra (Proprietor) (46 Points)

22 September 2011  

First of all i will like to congratulate each and every brilliant CA who are powering this Forum.

I run a small florist shop in Dehradun. Quite often people visit my shop and ask me to deliver flowers to Mumbai or Delhi. For delivering such orders we have tied up with the florist shops in both Mumbai and Delhi. For flowers delivery In Delhi or Mumbai Indirectly i am making the purchase on behalf of my customer.

Suppor my customer asks me to send a bouquet of500 to Mumbai. I give a call or email the order to the florist based in Mumbai and ask him to deliver a flower bouquet for400 all inclusive. The florist is not aware of the amount i get from my customer. He is paid either immeditaely or at the end of each month.

So now my question is "Is TDS to be deducted for the purchase/payments being made to the florist in Mumbai or Delhi under contractors?"

I asking the florist in Mumbai or Delhi to deliver the flowers with "So and So Details" and "So and So Value" be a "Purchase Transaction" or some sort of "Verbal Contract" wherein the florist in Mumbai or Delhi is delivering the flowers on my behalf.

 

Raj