12 June 2011
Our company purchasing some of raw material from his customer and finished components sale to it again. Custer make payment after deducting TDS. Please clarify is it correct ? on what ground ? and if yes what is the tds rate ?
12 June 2011
If I understood correctly- Your Company is purchasing goods from a party who buys back the finished product in which the goods purchased by your company from such customer is used as a raw material.
Both the transactions are separate and on principal to principal basis. No TDS is deductible.
12 June 2011
Sir Suresh Ji and Ram JI.... If I am not wrong then even if the transaction is on principal to principal basis but the things are very similar to a job worker....and for this case of Excise in case of DCM ltd. can be reffered and if that holds good here then ddeductiong tds is correct...but yes more things can get clear on knowing the full and factual position
CAclubindia
