Not sure if TDS deduction is applicable

Kindly intimate for further queries.

Dear Ateeq so you mean to say that it a "Work Contract" contradicting the definitions of "Supreme Court regarding "Work/Purchase" contract.

According to me it is a "Purchase Contract" because "Ownership Is Being Transferred" and it am "Not Providing Him With Any Raw Material For Processing". I think you did not read the definition as laid my the honorable "Supreme Court Of India"

Rishi

Also he cannot be my Agent because he is not "Selling My Products". He is in fact selling his products at his prices.

Ateeq suppose you place a coporate order with LG electronics for supplying you 100 refrigerators. LG instructs it's local office to supply you with the same.

Now according to you "You are liable for deduction of TDS" because LG Electronics becomes "Contractor" and "LG Showroom In Your Area" becomes "Sub-Contractor"

Rishi

Dear Rishi,

I think the nature of your business is a contract based, say,

If you are selling only flowers then it will be "Sale of goods" and TDS will not be applicable.

Further if you are arranging or catering the services for the setup of flowers say' in parties or on occassions then you will be classified as a "Contractor" and if you are delegating the same responsibilities to the other person than the other person will be known or classified as "Sub-contractor".

If your business is restricted only to the extent of sale of flowers then in no case TDS will be applicable.

why confused its simple  sale purchase consideration. TDS not applicable.

Dear Surender,

Mr. Rishi will be getting contracts for the arrangement and instead of executing the same, he is diverting it to another florist (Say, Sub-contractor) who is working on behalf of Mr. Rishi, not selling flowers to Mr. Rishi. If the matters end with Selling flowers then your assumption is correct.

Dear Ateeq By Contracts Do you mean "Sale/Purchase Contract" or "Work Contract"? Your have failed to define contract previously.

Just specify "Work Contract" or "Purchase/Sale Contract"?

The definition you have sited will mean that "Making A Phone Call To Have The Medicine Delivered At Your Door Step" is a "Work Contract" and not a "Saled Contract" so a medicine shop should pay Service Tax Rather than VAT

Dear Ateeq There are two aspects here. A Florist who is decorating flowers at a wedding or some party is liable to pay service tax whereas a florist selling flowers is liable to pay VAT

I am not arraning for decoration at marriages and all. I am just arranging "Flower Deliveries" Like for example "Bunch Of 12 Red Roses" at a specified address using a "Specified Message". This is just like a normal walk in customer will do. He will pay for the same and ask him to deliver the same at a particular address.

The only difference between me and that customer is that i am buying in bulk and he is not. Now this cannot be called as a "Work Contract" because i have not supplied him with any "Raw Material" and the Possession Of the product has changed from that of the "Shokeeper" to the "Recipient". 

There are only few customers who buy flowers for themselevs. Everyone ask the florist to deliver flowers to their loves ones on their birthdays or anniversaries just like a Chemist delivers medicine at your doorstep. In the last case the main product is medicine and delivery is a add-on service being provided by the Chemist Shop. Same is the case with a florist shop. Main product is "Flowers" but "Delivery" is a add-on service being provided by the florist shop.

I am simply emailing the order to the florist asking him to deliver this with "So and So details". Is it really a "Sub-Contractor"

Dear Mr. Rishi,

Are you selling the flowers or taking orders for arranging them in the occasions or parties.

Dear Raj as suggested by other members i'd also like to say that the rule of TDS is not applicable to purchas etransactions.

RG

In that instance it would be treated as a normal sales and purchases where instead of recieving/taking delivery you are forwarding it to other persons. (an additional Service). Then TDS will not be applicable.

Chinta mat karo bhaiya, TDS nahi lagega.......... ap business main dhyan do.........

Agree With Aditya

So raj Malhotara Sir what you finally decided is it chargeable to vat or service tax