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Tds (194c)

Yuvraj Sahni (Student) (42 Points)

23 January 2014

Hi all

I need help
please suggest if i purchase 500 CDs (included data) from a propritor along with brouchers of our co.
does it attracts 194C
suppose payment is more than 30000

Please suggest

Thanks in advance

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5 Replies

CA Prashant Gupta (DGM (F & A)) (14068 Points)
Replied 23 January 2014

I don't think TDS is applicable as this is purchase

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Pratik CA Final (Article Assitant) (102 Points)
Replied 23 January 2014

194C is not applicable in case of Sales of goods which are covered under the SAles of goods Act.

Yuvraj Sahni (Student) (42 Points)
Replied 23 January 2014

Thanx 4 ur reply but the proprietor is also inserting the brouchers of the co. In the packets of each cd isnt it a contract? Can you please elaborate...

Yuvraj Sahni (Student) (42 Points)
Replied 23 January 2014

Also he is writing data about the co. In each cd

Pratik CA Final (Article Assitant) (102 Points)
Replied 25 January 2014

And even if the he is writing the data for you and inserting bouchers in each packet is termed as sale of service and the same does not attract TDS sec 194C. The propreitor is not providing you as free service so it will be Sale of goods and service which is not covered under the TDS.