Not sure if TDS deduction is applicable

TDS IS NOT APPLICABLE IN PURCHASE TRANSACTIONS

No TDS deductions

agreee with aditya

its a pure purchase contract and hence no applicability of tds provisions. Just because you want the flowers of your choice to be delivered it does not mean that it is work contract.

And it is not covered under commission as well. Hence no TDS provisions are applicable

TDS IS NOT APPLICABLE IN PURCHASE TRANSACTIONS.

Thanks guys for helping me out especially Ashish Gupta for detailed explanation. Also can you guys guide me if such a transaction is simple "Sale/Purchase" or it is providing "Service" to the buyer by arranging flowers delivery for him in Mumbai/Delhi.

I need this for deciding the scope of tax liability

A. Vat Or

B. Service Tax

Raj

I believe that the relationship here might/can be interpreted as the principal and agent relationship as Mr. Raj Malhotra is not purchasing, he is dealing with the florist of Mumbai and Delhi. Hence those two florist as following the instructions of Mr. Raj Malhotra can be called as agents. Hence TDS might attract if it exceeds the limits. Further Mr. Raj malhotra can you kindly provide few details regarding "Whether you are Sharing some profits with the florists of Mumbai and Delhi?".

Dear Ateeq

I only give them fixed value or the value is quoted by them depending on the number of flowers in the arrangement. They do not know anything about the money i get

Rishi

it should attract VAT provisions only. it is only like you are selling the flowers without taking the delivery. Some VAT form is used in this regards that you can consult with the VAT consultants of both the states

It can be taken as TDS on contract.

See as you are giving them the notification about the contract of selling or delivering some goods they are executing and getting their contractual amount.

Hence in my opinion it can be taken as TDS on contract. 

Before going further I request you to elaborate the following

1. maximum amount you are paying to them or paid to them in general.

2. your expected income from business.

3. Are you a shop or establishment registered with Income tax authority or through a PAN card and 

4. Are you filing returns.

I am not denying the fact that it is a "Contract". Now the question is that is it a "Work Contract" or is it a "Purchase/Sale Contract"

I just read the following conclusion from the previous topic:

From the above definition of works contract and contract of sale by various court decision laws and the CBDT circular giving clarification it can be safely interpreted that that where the contract the contract is for transfer of the ownership of the goods, it is a contract of sales and if the contract is for adding some value to the principal item supplied by doing some workmanship or with application of some material the contract is a works contract. The CBDT has also tried to settle this issue by issuance of the circular no 13/2006. The circular admits that the provisions of section 194C should not be applied on the contract of sales and the circular no 681 (Supra) be referred to decide the applicability of the provisions, however inadvertently this circular has also missed out to exactly define the works contracts and the contract for sale, thus keeping the definition of the phrase open to interpretation and litigation.

The amount paid is well above the prescribed limit of 30000 and 75000. I am the proprietor of my company having PAN Card. Yes i am filing my Income Tax Returns. I do not supply them within anything. I just tell them the order value or they quote the value depending on the type of product required

In such situation you can be called as the Contractor and the florist of Mumbai and delhi can be classified as Sub-contractor i.e., again TDS under Section 194-C attracts, only if you are paying amount exceeding Rs. 30000 in single transaction or if the total payment for the year exceeds Rs. 75000, Otherwise TDS will not be applicable.

Thank You!