Kamleshwar Tyagi (Manager- Accounts) (58 Points)
01 July 2008Fact: Company gives a contract for Sweets for AGM to a Sweet Shop for Rs. 6 Lacs.
Query: Should company is liable to deduct TDS on Rs. 6 Lacs, if yes, then what would be rate of TDS.
Thanks & Regards.
Rishubh Mathur
(Analyst -Taxation)
(442 Points)
Replied 01 July 2008
If the invoice is only for value of sweets, then it's normal purchase. But if the invoice also includes any any payment in nature of contract fees , then only TDS will be deducted on that particular amount.
C.rajesh
(Articles)
(1392 Points)
Replied 01 July 2008
no need to deduct TDS, because it is only a contract for sale not a contract for work.
CA Rajesh S
(Chartered Accountant)
(1581 Points)
Replied 01 July 2008
TDS need not be deducted , b'cause there is no service invoiled, it's only a sale/purchase transaction
Rajkumar Nallah
(Consultancy - I.T Recruitment)
(25 Points)
Replied 01 July 2008
The transaction is merely purchase and do not create any sort of perpetual relation as regularly done.
The above transaction accross and prima-facie do not give raise any contractual relation hence no TDS as suggested by 194C would apply.
Kaushik Padhiyar
(Manager - Financial Planning and Analysis)
(68 Points)
Replied 03 July 2008
NO TDS WILL BE DEDUCTED AS IT IS A CONTRACT OF SALE AND NOT A CONTRACT OF WORKS.
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 03 July 2008
This is just a simple purchase so no need to deduct TDS. further it is only a contract for sale not a contract for work.
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