Section 194 C

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DHAVAL (Querist)
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07 December 2009 There is a firm, which is doing construction work. According to the nature of business they have to purchase "CLAY" or they have to do "CLAY EXTRACTION WORK".

My question is, Whether this type of expense will attract section 194C?

Plz. give me the reference of any kind if you have or send me a link or any kind of case.

My Email Id is dhaval_8782@yahoo.com

Manikanta Raju CA,CWA,(CS)

Manikanta Raju CA,CWA,(CS) (Expert)
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08 December 2009 Hi,

If it is purely a purchase transaction then 194C is not attracted.

How ever if it invloves a contract nature of work/ supply then it attracts 194C.

For more clarrity please refer TAXMAAN, singania, Exclusive book only for TDS