whether we need to deduct any TDS for Printing & Stationery as per Sec. 194 C, if there is no contract between the printing press and company, but the payment exceeds Rs100000 per annum.
jobin george (article studient) (28 Points)
20 June 2009whether we need to deduct any TDS for Printing & Stationery as per Sec. 194 C, if there is no contract between the printing press and company, but the payment exceeds Rs100000 per annum.
PRAVEEN KUMAR
(MBA (Finance) B.Com.(P))
(3443 Points)
Replied 20 June 2009
surely you should deduct TDS U/s 194C.
Anumanchipalli Sathikonda
(Tax Consultant)
(1559 Points)
Replied 20 June 2009
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
PRAVEEN KUMAR
(MBA (Finance) B.Com.(P))
(3443 Points)
Replied 20 June 2009
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
Anumanchipalli Sathikonda
(Tax Consultant)
(1559 Points)
Replied 22 June 2009
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
CA. Rashi Goyal
(Chartered Accountant)
(512 Points)
Replied 22 June 2009
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:
Anumanchipalli Sathikonda
(Tax Consultant)
(1559 Points)
Replied 22 June 2009
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
CA Prakash
(Qualified)
(229 Points)
Replied 20 April 2011
I have gone through your suggestions but what is the final conclusion ON APPLICABILITY OF TDS FOR ANNUAL REPORT PRINTING
Helmut Kassen
(monday)
(21 Points)
Replied 05 May 2011
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!
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