Sanjeev(CA)
During the course of audit i have come accross the following problem.
My client is buying printed packing material from one of his party. The Packing material is being used by the company for packing the finished goods of company for sale in the market. The packing material also bears the name of the company. My question is whether there is any need to deduct tax at source on such type of expense. Because the section 194C says if the ownership over the raw material is of the company and the other party fabricated the material according to the specifications of the co then TDS is to be deducted. But if the ownership over the raw material is also that of other party and not of the company then this amount to purchase of goods from other party, hence there is no need to deduct TDS on such payments. Please send me the reply of this querry as soon as possilbe.
Thanks.
Sanjeev(CA)
CAclubindia
