Tds clarification

1219 views 2 replies

Sir,

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 ?

Replies (2)
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.

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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