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Suggest if there is any section starting 192 c (e)

TDS 664 views 1 replies

Aarti Kadam

Sr. Auditor

34 Points Joined March 2012

"TDS need to be deducted on the invoice value if the purchase of product manufactured out of material supplied by customer"

And the explanation to Sec 192C, (e) 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.]

This is a query by one of our clients but i could not find any such section or clause in income tax act

Please suggest on the same

Replies (1)

SIDDHARTH KOTHARI

N.A

280 Points Joined March 2009

HI,

YOUR CLIENT IS ABOLUTELY CORRECT.

THERE IS AN EXPLANATION GIVEN UNDER SECTION 194C.

EXPLANATION NO:IV WHERE DEFINITION OF "WORK" HAS GIVEN.

IT'S AS FOLLOW:

WORK SHALL INCLUDE:

a) advertising

b)broadcasting and telecasting including the production of the programmaers for such braod casting or telecasing

c)carriage of goods or passengers by any mode of transport other than by railways

d)catering

e)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.

So, as per this definition the Section 194C applies only to the "WORK" which are covered by this explanation.

Kindly check it in the Income Tax Act,1961.