TDS deduction

147 views 3 replies

Jeetu Manglani

177 Points Joined June 2018

We are sending our paper / board to the press and , the printing press will print the material using its own plates, inks chemicals ,laminations etc. We are sending only base paper and the printing press will do value addition by printing inks , lamination etc .

Should we deduct TDS or not during payment of this bill ?

Replies (3)

Deepak Gupta

CA Student

15927 Points Joined May 2011

TDS should be deducted u/s 194C

Explanation (iv)(e) to 194C(7), says that work shall include, 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.

Manish

Student

190 Points Joined August 2018

YES.. in this case sec194c will attract..
manufacturing and supplying of a product of article as per customer specifications out of the material supplied by him ...shall be treated as a contract and HE'S SHALL BE DEDUCTED U/S 194C provided that---- @ 1%(indi or huf)or 2%(other)
1)single contract is exceeding rs 30000 per contract...
2) aggregate contract exceeding 100000..
in such case TDS shall be deducted...
if contract is made for personal purpose by individual of huf then shall not be deduct tds...