hi all,
Ours is a media company which is publishing magazines. We are getting the magazines prined and supplied through another company. There is no written contract between our company and theirs. And further, the other company is charging 4% VAT on the printing charges. Now I would like to know whether we are liable to cut TDS on the payment to the other company under section 194C.
if you are supplying papers then works contract/ labour contract is there if you are not supplying any material to printers then tds provison is not applicable
There are certain case laws, which treat ur trans as purchase. I cant recollect those. Its always safe to deduct TDS and avoid litigation or interest or trivial matters.
This is a kind of Contract for Sale and not Work/labour contract u/s 194 C.
yes you have to deduct the TDS.
As per the provisions of the sec.194 of the Income Tax Act, 1961, it includes ".....any work .........", so i my opinon you are liable to deduct the T.D.S subject to the exempted limits.
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