Tds u/s194 c

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vikas (Querist)
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09 April 2010 if literacture is made as per specification of the company and vendor charge vat than tds u/s 194 c is applicable or not pls reply

taxindiaconnect

taxindiaconnect (Expert)
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09 April 2010 As per section 194C one has to see the underlying contract. If the contract is primarily for purchase of goods , then it will be a contract for sale of goods. If the underlying intention is not to purchase the goods, then it will be a contract for work. For example if one purchases the carton boxes from the other with company name printed on it, the contract is primarily for purchase of carton boxes and not for printing on the other hand some one purchases copany name prited staionary from printer, the intention is not to purchase the paper, but get the stationary for the company. This will be a contract for works. In your case it seems that the litreture is stationery, it will be a works contract.