NON DEDUCTION of TDS u/s 194 C

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2010 Yesterday I had asked whether TDS had to be deducted on expenditure incurred by Charitable Organisation on Printing of Nurses Manual to be distributed to nurses. Amount for which bill was raised was Rs. 60,000/-. Our expert had replied no TDS had to be deducted . I wanted to Know what provision / Circular/ Notification pertaining to above said expenditure incurred is applicable under the said context. (Paper Material was not provided to printer.who raised the bill & no Vat was also provided for?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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27 March 2010 See ammended 194C wherein if you give works contract and materials are supplied by you then tds is applicable. If you give a works contract and the contractor is purchasing the items from outsiders and billing you alongwith Vat then TDS is not applicable. (EVenthough he has not charged vat you check whether the price is inclusive of vat and VAT registration is number is printed on the Bill.