TDS applicable or not

TDS 4866 views 23 replies

Hi,

We are purchasing every month Stationeries and House Keeping Materials from one Vendor and also he charging K-VAT. My Question is for this we have to deduct TDS or Not???????? Pls clarify....

Awaiting for your valuable replies.............

Replies (23)

Dear Vijaya,

Purchase of material does not attract  TDS provision. TDS Provisions are attracted where transaction involves an element of service.

Therefore, in your case, you do not have to deduct any TDS.

Hope this solves your query.

TDS not applicable.

TDS not applicable

Fully agree wtih Jayesh

I agree,  but if we purchase rarely then TDS is not applicalbe. But we purchasing the items regularly. both are entered a contract ,  the vendor will become a contractor. Then TDS applicalbe or not.

Its contract to sell stationary and not contract to provide some specific services. TDS does not apply.

Provision of Sec 194C are not applicable for payments made under the contract of sale of goods. hence no TDS on the above contract. 

Sec. 194C talk about contract for carrying out any work & ur case is not covered in defn of work so u need not to deduct tds.

TDS Not applicable

not applicable

TDS not applicable...it's only sale of goods...no service involved...so no TDS provisions

Dear all 

TDS (Tax deduction at source)  is not only mean to Income tax ..it has also mean to sales tax (State VAT).

Yes, this tds is applicable (optionally) to some states, where buyer do deduct tds  in line issue a certificate of credit to its seller, carrying that amount of deduction .

buyer usually deduct TDS on Vat receivable with respective percentage like 2 or 4 and deposit the same to govt treasury, with further issuance of a certificate. Certificate are usually issued quarterly/half yearly or yearly basis. 



no tds applicable on purchase of goods....

applicable on contract of services...........

The chapter of TDS was basically incorporated in Income Tax Act to provide a mechanism by which government revenue could be secured at early stages to prevent it from tax evasion at later stages (i.e. at the time of assessment). Since, TDS is deducted as per the provisons of  Income Tax Act, hence it is "Income Tax Deducted At Source" in short TDS. Sales receipts for goods cannot be equated with income, hence no TDS is charged on the payment for sale of goods. But its different in case of provision of services.

I just provided the logic for not deducting TDS on the gives case.


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