Tds

niteshkhurana (Querist)
Follow

15 February 2013 will tds bw deducted on flex printing and hoardings. bills given by party include vat

SUMIT KUMAR MEHARIA

SUMIT KUMAR MEHARIA (Expert)
Follow

15 February 2013 NO TDS WILL NOT BE DEDUCTED. SEC 194C -DEFINITION OF WORK CONTRACT DOESN'T COVER.

niteshkhurana (Querist)
Follow

15 February 2013 but sir as per circular no.715 dt. 8.8.1995 supply of printed material is covered by section 194 C

SUMIT KUMAR MEHARIA

SUMIT KUMAR MEHARIA (Expert)
Follow

15 February 2013 The provisions of this section will not cover contracts for sale of goods: Since VAT Charged.
Where, however, the contractor, undertakes to supply any article or thing fabricated according to the specifications given by Government or any other specified person and the property in such article or thing passes to the Government or such person only after such article or thing is delivered, the contract will be a contract for sale and as such outside the purview of this section.

CA Ayush Agarwal (Expert)
Follow

15 February 2013 Flex Prinitng and Hoarding Covers Under Contract 194C and Liable to TDS.

Work Contract Here means Supply of Material+Labour (Specification), if This is There Then TDS Should be Deducted.

niteshkhurana (Querist)
Follow

15 February 2013 in bill labour portion is not specified, the party however has entire responsibility for both production as well as display of hoardings

CA Ayush Agarwal (Expert)
Follow

15 February 2013 Yes, Then Its Amount to Work Contract.
TDS is to be Deducted.
Labour Means Service Here.
So Service Represent Display of Hoardings.

niteshkhurana (Querist)
Follow

15 February 2013 but sir labour portion is not specified in the bill, the party gives bill charging vat on entire amount.

CA Ayush Agarwal (Expert)
Follow

15 February 2013 In case the hoardings space and boards etc are provided by you and the vendor has simply prepared hoarding in the sense of paining, installing etc. then it will be a works contract and VAT may not be applicable and TDS will apply. The nature and character of the vendor is important. In some situations if there is composite amount it may involve professional fees ( for preparing designs), works contract and supply of goods. So check with full facts.

CA Ayush Agarwal (Expert)
Follow

15 February 2013 And Pls Check With This Article:-

May Clear Your Doubts :-

https://www.caclubindia.com/articles/works-contracts-vs-contract-of-sales-whether-tax-deduction-2313.asp#.UR3V6x3Is6s

niteshkhurana (Querist)
Follow

15 February 2013 no sir no type of material is provided by the client to the party. the party acquires material on its own and prepares the hoardings banners etc.

niteshkhurana (Querist)
Follow

15 February 2013 so can it be concluded that tds will not be deducted. kindly reply

niteshkhurana (Querist)
Follow

15 February 2013 so can it be concluded that tds will not be deducted. kindly reply

CA Ayush Agarwal (Expert)
Follow

15 February 2013 Tell me Facts of Total Case.

What You have Provided to Vendor and What Vendor Done.
How Bill is Prepared.

niteshkhurana (Querist)
Follow

15 February 2013 the client asks the party to prepare flex board, hoarding and other type of advertising material. the client in the sense just places the order with the party and passes the bill charging vat