194c

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nagaraja (Querist)
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26 December 2014 Hi all,

1. Whether Section 194C is applicable on printing where material purchased from outside and showing labour charges separately in the bill..

2. Whether TDS is applicable for service charges bill for printing where materail purchased from outside and bill for service charges raised separately....

Rupesh Jain

Rupesh Jain (Expert)
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26 December 2014 tds will applicable on the labour charges . if printing press give printed material then no tds.

if in bill labour charges is separately show then tds will applicable u/s 194C for that you see the limit specified rs. 30000/- single bill and rs75000/- in a year.

nagaraja

nagaraja (Querist)
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26 December 2014 We are the printing press and we are providing printed material to the customers as per their specifications but we will purchase raw material from outside.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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14 July 2024 Let's address each of your questions regarding the applicability of TDS under Section 194C for printing services where materials are purchased from outside:

### 1. Applicability of Section 194C on Printing Services:

**Section 194C Overview:**
- Section 194C of the Income Tax Act, 1961 pertains to payments made to contractors and sub-contractors for carrying out any work, including manufacturing or supplying a product according to the specifications of the person paying (the customer).

**Applicability to Printing Services:**
- Printing services where the printing press purchases raw materials (such as paper, ink, etc.) from outside and provides printed materials to customers typically fall under the ambit of Section 194C.
- If the customer specifies the design, format, or content to be printed, the printing press is considered to be providing a service as per the specifications of the customer.

**Labour Charges Separately Shown:**
- Even if the labour charges for printing are shown separately in the bill, Section 194C can still apply. The key determinant is whether the printing press is providing a service as per the specifications of the customer (which is typically the case in printing services).

**Conclusion for Question 1:**
- Yes, Section 194C is generally applicable to printing services where materials are purchased from outside and printing is done according to the specifications provided by the customer.

### 2. TDS on Service Charges Bill for Printing Services:

**Billing Structure:**
- If the printing press raises separate bills for materials purchased from outside and for service charges (labour charges for printing), the treatment for TDS can vary:

**Material Purchase:**
- Payments made for purchasing materials (like paper, ink, etc.) from outside suppliers generally do not attract TDS under Section 194C because it’s a purchase of goods, not a payment for services.

**Service Charges (Labour Charges for Printing):**
- Payments made for service charges (labour charges for printing services) provided by the printing press to the customer can attract TDS under Section 194C, provided the payment exceeds the specified threshold limits.

**Threshold Limits for TDS under Section 194C:**
- TDS under Section 194C is applicable if the aggregate payment to a contractor or sub-contractor in a financial year exceeds ₹30,000 for single payment or ₹1,00,000 for aggregate payment.

**Conclusion for Question 2:**
- Yes, TDS can be applicable on service charges (labour charges) billed separately for printing services, provided the threshold limits under Section 194C are exceeded.

### Additional Considerations:

- **Documentation and Compliance:** Ensure that proper invoices and bills are maintained for both material purchases and service charges (labour charges) to facilitate accurate TDS compliance.
- **Consultation:** Given the specific nature of your business and transactions, consulting with a tax advisor or Chartered Accountant is recommended to ensure compliance with all relevant tax laws and regulations.

By understanding these points, you can ensure proper handling of TDS requirements for printing services where materials are purchased from outside suppliers.