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Tds on photocopy/xerox

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Querist : Anonymous

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Querist : Anonymous (Querist)
11 November 2011 We get photocopy done from a vendor as per our requirement and yearly bill exceess Rs 75000/-. Do we need to deduct TDS and if yes at what rate.

12 November 2011 In this case the Vendor is using his own papers for copying the documents.
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It can also be presumed that he is purchasing paper from the market and not from your organisation.
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In Explanation (iv) to the Section 194C, it has been mentioned that work does not include manufacturing or supplying products by using material purchased from a person, other than such customer.
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So in my view, No TDS requirement has not been prescribed by the law for such transactions.
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However, TDS rate for Individual and HUF contractors is @ 1% , and if you deduct TDS , you will be safer from potential department threats.
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Please wait for expert's opinion.

14 November 2011 agreed with paras sir.


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