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PrasadN (Lerner)     19 September 2011

Tds clarification


I am working in a manufacturing company, our company has given order(purchase order) to vendors for promotional material(T-shirts,Caps with our company emblem),this material & evvery thing beared by vendor only, Is this cover under 194C ?,  Because i heard some notification has issued by Govt for non deduction of TDS for this type of services(material not given by company), is this correct ?

 2 Replies

ashish gupta

ashish gupta ( student)     20 September 2011

yes you dont need to deduct tax on this as this is considered as a contract of purchase and not a work contract. TDS would not be applicable as the vendor does not purchase the material from your company.

Dhananjaya.N (Asst. Manager Finance & Accounts)     20 September 2011

No need to deduct TDS because TDS is not applicable for purchase of goods, if he is charging Service Tax  ( job work) then you can deduct TDS

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