16 February 2018
X Ltd is aquatic feed manufacturing company. It received an order from Y Pvt Ltd for manufacturing feed. Required materials were supplied by Y Pvt Ltd to X Ltd.Y Pvt Ltd even formula(Mixture of Raw Materials) to X Ltd. Ultimate Product is sold by X Ltd to Y Pvt Ltd. Will the payment by Y Pvt Ltd to X Ltd be subjected to TDS under section 194C ?. Please clarify.