Tds vis a vis Vat

TDS 1206 views 3 replies

Ritesh

CA Final

326 Points Joined August 2007

Dear All, Please help.

A Company purchases bags from a Party & asked it to print Companies name on it too.The party has charged Vat on the said bill. Now i want to know whether Tds will be deducted, if yes, then on which amount. The party has not charged separate bills.

Thanks

Replies (3)

Pushkraj Sathe

Chartered Accountant

203 Points Joined November 2007

Dear Ritesh is it not possible that the supplier has decided the selling price per bag taking into consideration that the purchaser will ask to print its name and the cost of printing the name per bag is so negligible that he has not separately charged such cost in the bills raised. It is just like a saree vendor giving a bag to carry the saree free of cost to each customer. The saree vendor does not charge for the bag.Hence no TDS since the bill is for Sales only.

CA. O.P. Agarwalla

C.A.

2916 Points Joined November 2007

I think u are asking about deduction taxes under Income Tax Act. In this case u are not liabale to deduct TDS under section 194C. You may refer Dabur India Ltd. 's case. If you want to ask some thing about VAT, please revert.