20 November 2009
Circular 13/2006 says that provisions of Sec 194C will apply if this is a contract of work & not contract for sale supply. Lets take an example :
Company A has given the printing of some handbill, brochures, leaflets, calendars to Company B. In this work the paper is supplied by the company A, in this case this is a pure contact of work & provisions of sec .194C apply accordingly. Now with the same printing work all material will be supplied by company B, in this case the this will amount to contract of sale & provisions of sec. 194C will not apply.
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