TDS On Printing & Stationery

surely you should deduct TDS U/s 194C.

 

Mr.Jobin George

and

Mr. Praveen Kumar

No Tax is to be deducted at source on printing and statinery.  It is a contract for sale. It is not a contract for service.  The BBDT has clarified the matter in Circular No.681 dated 8-3-1994.  You can find this circular in (1994)  206 ITR (St). 299.  You will find the relevant clarification in Para No.7(vi)(b) of the circular.  I am herewith attaching the circular.

Best Wishes

Sathikonda

its ok that on sale there is no TDS

but when printing press is giving services towards letterhead printing, annual report printing, other office document printing services than only u should deduct TDS u/s 194C. thats what i told

Thanks

 

Mr. Praveen Kumar

You are still in confusion when the company orders for printing annual reports and other documents like letter heads etc., the company is placing order for purchase of statinery with speification. Hence it is a contract for sale of goods only.  It does not fall under the category of contract for services.  Hence the company need not deduct tax at source.  You please read the contents of the circular once again.

Sathikonda

 

Hi,

TDS needs to be deducted on the mentioned payments. It has been specifically provided in the Circular 715 dated 08.08.1995. See Q. 15 in the following link:

https://law.incometaxindia.gov.in/TaxmannDit/DispCitation/ShowCit.aspx?fn=https://law.incometaxindia.gov.in/directtaxlaws/cbdt/dtccontents/PARA1119.htm

 

Mr. Jobin Geroge

Mr.Praveen Kumar

and

Mr.Rashi Goyal

I would like to bring to your notice that the Delhi High in the case of CIT Vs. Dabur India Ltd., held that purchase of statinery with sepcific rquirements by the assessee is only a contract of sale and not a contract for services.  Hence it was decided that no tax need not be deducted at source.

I am herewith attaching a word document containing the case law.

With Best Wishes

Sathikonda

I have gone through your suggestions but what  is the final conclusion ON  APPLICABILITY OF TDS FOR ANNUAL REPORT PRINTING

Hi Prakash,

 

Why don't you try letterhead printing with Print24? I have been using them for ages and I am really happy with them.

All the best!

What u trying to say//???????

Sir pls let me know am having a pvt ltd firm and am engaged in selling framed certificates and hoardings etc .so, am engaged in outsourcing printing of certificates from some vendor and same printing of flex banners etc pls help me in knowing should i have to deduct tds on their invoice . Suppliers are registered dealers under gst and i rcv tax invoice from them...