Tds urgent

ANJALI NEGI (Chartered Accountant) (1263 Points)
Replied 20 April 2013

No, TDS is not deductible because it is a simple purchase.

CA. Kunal Lakhotia (ACA) (1006 Points)
Replied 20 April 2013

Its not a purchase, but a payment for P&S in excess of 30000/-

ANJALI NEGI (Chartered Accountant) (1263 Points)
Replied 20 April 2013

payment is made for a purchase....and this nature of payment is not covered under TDS provisions...

If the party to whom payment is made charges VAT on its bill then it is just a contract of sale and doesn attact TDS provisions

1 Like

Deepak Gupta (CA Student) (15922 Points)
Replied 20 April 2013

Provisions of section 194C would apply in respect of a contract for supply of any article or thing as per prescribed specifications only if it is a contract for work and not a contract for sale as per the principles in this regard laid down in para 7(vi) of Circular No. 681, dated 8-3-1994.

Circular : No. 13/2006, dated 13-12-2006.
.
In reply to question No. 15 in Circular No. 715, dated 8-8-1995, in respect of contract for supply of printed material as per prescribed specifications, it has been said that such contracts would also be covered under section 194C.
.
Hence, if it is like any normal purchase of items then TDS is not required to be deducted whereas if you are purchasing stationery items with prior specifications (like printing of company logo, name etc.) then deduct TDS u/s 194C.
.
The term ‘materials contracts’ in the context of section 194C would mean contracts for supply of materials where the principal contract is for work and labour and not a contract for sale of materials.

1 Like

Prashanth S K (Practice) (148 Points)
Replied 20 April 2013

The head of expense may be printing & stationary but you have to see what exactly the transaction is..As rightly said by Deepak if entire amount is for purchasing stationary then TDS wont get attracted as it is a transaction of sale as pointed out rightly by Anjali. But if it is getting covered under the 'work' definition as specified in Sec 194 C it will for sure get covered as 194 C doesnt want a contract to be a written one. So most of the transactions getting covered under 194 C are deemed/implied contracts for ex: courier, cab expenses on a recurring basis.

CA Prashant Gupta (DGM (F & A)) (14068 Points)
Replied 20 April 2013

as per circular 715 dt 8-8-95

if printing and stationery is as per specific iations then it is job work and 194C will be applicable

if you purchase printing & stationery that is common nature then it is purchase and no TDS

2 Like

Deepak Baghel (Accountant) (74 Points)
Replied 22 April 2013

Yes TDS is deductible u/s 94c if you have give hime to print your stationery as per your requirement that is your company's name on file etc. if you dont have made any special contract with stationer and you simply purchase ready made stationery then TDS will not be applicable.

1 Like

Mohan (Asst Manager-Accounts) (24 Points)
Replied 22 April 2013

Dear Friends

Stationery purchase is pure contract of sale

Printing of items according to the specification of the customer (for Eg. ABC Co. orders bill books with logo printed)

1) Papers, cardboards, inks etc supplied by ABC Co. Section 194C will apply.

2) The Vendor itself purchasing other than ABC Co. and supplied the materials according to the specification of ABC - Contract of Sale - No TDS will be deducted.

Please refer to 194C Meaning of Work [Clause (iv) (e) of Explanation (iv) to Section 194C (7)]

(e) manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer,

but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer.

1 Like

Ramanuj (Accountant.) (834 Points)
Replied 22 April 2013

DEAR ALL

if Made of Company logo, Bill books, the TDS Is applicable.

If purchse by company printing item as like A4 paper, pen, pencil & other stationanary item then tds is not applicable.

if Vendor have given sinlge bill then TDS is applible. If have two bill Raise by vendor the only Tds is applicable on Work contract. not matereial

Thanks

With regards

Ramanuj

DYes TDS is deductible u/s 94c if you have give hime to print your stationery as per your requirement that is your company's name on file etc. if you dont have made any special contract with stationer and you simply purchase ready made stationery then TDS will not be applicable.

Read more at: /forum/tds-urgent-246892.asp#.UXTWe0rIC8o

Yes TDS is deductible u/s 94c if you have give hime to print your stationery as per your requirement that is your company's name on file etc. if you dont have made any special contract with stationer and you simply purchase ready made stationery then TDS will not be applicable.

Read more at: /forum/tds-urgent-246892.asp#.UXTWe0rIC8o

TUSHAR (AE) (49 Points)
Replied 22 April 2013

In case of contract to supply stiationery as per specification, whether VAT is applicable or Service tax?

Kedarnath Nayak (Accounts Officer) (33 Points)
Replied 27 April 2013

Need Help !!!

A Pvt Ltd co. purchase Raw material & packing material & mfg goods of brand A & sell it to XYZ who is the original brand owner & who sell the product to the market. Both the Pvt Ltd Co & XYZ made an contract for this. So while receiving the payment from XYZ for sell of the product, he deduct TDS @ 2% from the total bill value. Whether he is right in deducting TDS. If yes which section it covers. How can I be satisfied about the TDS. Please help me Out.