08 September 2011
Works contract 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.
So if material not supplied by the customer then TDS not deductible and if material supplied by the customer then TDS deductible.
08 September 2011
Completely agree to what Aditya said.
TDS in the given case will not be deductible as the term used is "purchase of Tags / Packing materials" so question of supply of material does not arises as it is simple transaction of purchase. I may kindly be corrected, if wrong.
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