TDS is applicable for Printing Work

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krishna

krishna (Querist)
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05 November 2007 Printing visiting card, name board, for this work TDS is applicable, if they give a bulk order.

CA. Ramesh P Choudhary

CA. Ramesh P Choudhary (Expert)
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05 November 2007 Yes.
Circular No. 715, dated 8-8-1995 on the subject of applicability of section 194C, in respect of contract for supply printed material as per prescribed specifications, it has been said that such contracts would also
be covered under section 194C.

Before taking a decision on the applicability of TDS under section 194C on a contract, it would have to be examined whether the contract in question is a ‘contract for work’ or a ‘contract for sale’ and TDS shall be applicable only where it is a ‘contract for work’. It is, therefore, clarified that the 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.

If printing charges are fixed for all card say Rs 200.00 irresprctive of Qty ordered then 194C would not applicable as it "contract for sale’ and "not for contract of work".