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TDS on Sweets

TDS / TCS 8053 views 7 replies

Fact: 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.

Replies (7)

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.

no need to deduct TDS, because it is only a contract for sale not a contract for work.

TDS need not be deducted , b'cause there is no service invoiled, it's only a sale/purchase transaction

No

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.

 

 

 

 

 

 

 

 

NO TDS WILL BE DEDUCTED AS IT IS A CONTRACT OF SALE AND NOT A CONTRACT OF WORKS.

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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