TDS

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SUNIL GUPTA (Querist)
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17 May 2010 REGARDING TDS ON WORKS CONTRACT U/S 194C WEF 01/10/2009, THE EXPRESSION “WORK” SHALL ALSO INCLUDE MANUFACTURING OR SUPPLYING A PRODUCT ACCORDING TO THE REQUIREMENT OR SPECIFICATION OF A CUSTOMER BY USING MATERIAL PURCHASED FROM SUCH CUSTOMER. HOWEVER IT WILL NOT INCLUDE MANUFACTURING & SUPPLYING A PRODUCT ACCORDING TO THE REQUIREMENT OR SPECIFICATION OF A CUSTOMER BY USING MATERIAL PURCHASED FROM A PERSON OTHER THAN SUCH CUSTOMER.

WHAT WOULD BE SITUATION, IF MANUFACTURING & SUPPLYING A PRODUCT IS DONE ACCORDING TO THE REQUIREMENT OR SPECIFICATION OF A CUSTOMER BOTH BY USING MATERIAL PURCHASED FROM SUCH CUSTOMER AS WELL AS MATERIAL PURCHASED FROM A PERSON OTHER THAN CUSTOMER.

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SKB

taxindiaconnect

taxindiaconnect (Expert)
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17 May 2010 It will be a works contract for the purpose of section 194C as the trigger point is work done according to specification, if material supplied by the principal manufacturer.