anish (Chartered Accountant) (118 Points)
20 June 2008hi all,
Ours is a media company which is publishing magazines. We are getting the magazines prined and supplied through another company. There is no written contract between our company and theirs. And further, the other company is charging 4% VAT on the printing charges. Now I would like to know whether we are liable to cut TDS on the payment to the other company under section 194C.
CA Hemant T Dewani
(Chartered Accountant)
(3356 Points)
Replied 20 June 2008
if you are supplying papers then works contract/ labour contract is there if you are not supplying any material to printers then tds provison is not applicable
CA. Atindra A. Prabhu Bhatikar
(practising CA)
(68 Points)
Replied 23 June 2008
There are certain case laws, which treat ur trans as purchase. I cant recollect those. Its always safe to deduct TDS and avoid litigation or interest or trivial matters.
Sumeet Bucha
(Article Assisstant)
(42 Points)
Replied 28 June 2008
This is a kind of Contract for Sale and not Work/labour contract u/s 194 C.
Nilay Shah
(Chartered Accountants)
(74 Points)
Replied 28 June 2008
yes you have to deduct the TDS.
As per the provisions of the sec.194 of the Income Tax Act, 1961, it includes ".....any work .........", so i my opinon you are liable to deduct the T.D.S subject to the exempted limits.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
CAclubindia
