30 May 2010
our company publishes the religious books. After printing of contents on papers, we send the papers to another company which does the work of binding, cutting, gumming, lamination work and other ancillary work to transform the bundles of paper into a book and send the books to us. that company issues the retail invoice and charges the VAT on lamination work,cutting charges and material used by it i.e gum, lamination paper etc.
Now, my question is that, do we require to deduct the T.D.S u/s 194c while making payment to that company or not ? Futher explain is this job work exempt under I.T.Dept. notification?