Krishna (Accountant) (54 Points)
23 July 2019
Monika Arora
(learner)
(347 Points)
Replied 23 July 2019
No TDS applicable for purchase of material.
Pratik Surve
(Assistant Professor )
(571 Points)
Replied 23 July 2019
NO NEED TO DEDUCT THE TDS , IT IS NOT SERVICE ITS PURCHASE OF MATERIAL.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 23 July 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 24 July 2019
1. TDS will not be applicable to the purchase of raw materials. If we observe TDS almost all the sections are oriented towards withdrawing a portion towards expense in the nature service.
2. Materials or Goods will have a portion of the cost involved in it so it makes a deduction of TDS difficult on the profit portion. Unlike for service where cost directly involved in making such services is comparatively low.
3. Purchase of Milk being a material for making sweets is not subject to deduction of TDS at the time of making payment to vendor (milk vendor)
Please correct me if the above interpretation has an alternative view.
CAclubindia
