anish (Chartered Accountant) (118 Points)
20 June 2008Hii friends,
Ours is a media company which publishes magazines. We are getting our magazines printed and supplied by another company. However there is no formal contract between our company and theirs. I would like to know, whether we are liable to cut TDS on the amount paying to them.
chetan
(Student)
(322 Points)
Replied 20 June 2008
MUKESH GOYAL
(SERVICE)
(45 Points)
Replied 20 June 2008
YOU GIVEN LUMP SUM CONTRACT TO PRINTING THE BOOKS INCLUDING THE LABOUR AND MATERIAL.THE PRINTER IS CHARGING SALES TAX ALSO ON THE BILL RAISED TO YOU. HENCE THIS IS COVERED UNDER SALES TAX AND NOT SERVICES .IN MY OPINION THE TDS IS NOT DEDUCTED ON SALES CONTRACT.
MUKESH GOYAL
(SERVICE)
(45 Points)
Replied 20 June 2008
YOU GIVEN LUMP SUM CONTRACT TO PRINTING THE BOOKS INCLUDING THE LABOUR AND MATERIAL.THE PRINTER IS CHARGING SALES TAX ALSO ON THE BILL RAISED TO YOU. HENCE THIS IS COVERED UNDER SALES TAX AND NOT SERVICES .IN MY OPINION THE TDS IS NOT DEDUCTED ON SALES CONTRACT.
M.Sriram Shenoy
(CA Final)
(814 Points)
Replied 20 June 2008
Yes. You need to deduct TDS if the amount of single bill exceeds Rs.20000.00 or cumulatively during a year Rs.50000.00 as it is covered under the ambit of Contract u/s. 194C @ 2.266% (check for surcharge implication depending upon deductees income level).
rahulbansal
(Accountant)
(51 Points)
Replied 21 June 2008
if you are doing rate contract than applicable. 194 C.
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