Hii friends,
Ours is a media company which publishes magazines. We are getting our magazines printed and supplied by another company. However there is no formal contract between our company and theirs. I would like to know, whether we are liable to cut TDS on the amount paying to them.
YOU GIVEN LUMP SUM CONTRACT TO PRINTING THE BOOKS INCLUDING THE LABOUR AND MATERIAL.THE PRINTER IS CHARGING SALES TAX ALSO ON THE BILL RAISED TO YOU. HENCE THIS IS COVERED UNDER SALES TAX AND NOT SERVICES .IN MY OPINION THE TDS IS NOT DEDUCTED ON SALES CONTRACT.
YOU GIVEN LUMP SUM CONTRACT TO PRINTING THE BOOKS INCLUDING THE LABOUR AND MATERIAL.THE PRINTER IS CHARGING SALES TAX ALSO ON THE BILL RAISED TO YOU. HENCE THIS IS COVERED UNDER SALES TAX AND NOT SERVICES .IN MY OPINION THE TDS IS NOT DEDUCTED ON SALES CONTRACT.
Yes. You need to deduct TDS if the amount of single bill exceeds Rs.20000.00 or cumulatively during a year Rs.50000.00 as it is covered under the ambit of Contract u/s. 194C @ 2.266% (check for surcharge implication depending upon deductees income level).
if you are doing rate contract than applicable. 194 C.
CAclubindia
