TDS FOR SUPPLY IN GOVT. DEPARTMENTS

This query is : Resolved 

02 April 2009 When we supply material to government department they deduct TDS on supply bills also. Is it valid to deduct TDS on supply of material.

In case it is not valid then where can we find reference for not deducting the TDS on supply bill

02 April 2009 a contractor is one who makes an agreement with another to do piece of work, retaining in himself control of the means, methods and the manner of producing the result to be accomplished, neither party have right to terminate the contract at will.

as per whirlpool of India ltd. case... supply of goods as per specification of buyer is case of sale of goods and not job work...

so supply of material wont be coveres u/s 194C and so tds should not be deducted

02 April 2009 Can I get some reference or circular which can be shown to govt department.

As the books/reference material only say where tax has to be deducted but it is silent on where it cannot be deducted.

Help me by giving the ruling on whirlpool case




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