Respected Sir,
I'm a sweet shop owner and I purchase milk in bulk quantity for that I received invoices, Is there any liability for TDS Deduction or if not Is there any problem in Deduction of TDS
No TDS applicable for purchase of material.
NO NEED TO DEDUCT THE TDS , IT IS NOT SERVICE ITS PURCHASE OF MATERIAL.
1. TDS will not be applicable to the purchase of raw materials. If we observe TDS almost all the sections are oriented towards withdrawing a portion towards expense in the nature service.
2. Materials or Goods will have a portion of the cost involved in it so it makes a deduction of TDS difficult on the profit portion. Unlike for service where cost directly involved in making such services is comparatively low.
3. Purchase of Milk being a material for making sweets is not subject to deduction of TDS at the time of making payment to vendor (milk vendor)
Please correct me if the above interpretation has an alternative view.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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CAclubindia
