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tds on printing

CA Abhash (Chartered Accountant) (324 Points)

23 January 2008

i have read somewhere that there is a notification regarding non deduction of tds on printing of voucher books, sales bill book and other material. is there any such notification issued?

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CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 23 January 2008

Abhash if you come to know..Kindly let me know yar

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Anil Kumar Agarwala (CA) (67 Points)
Replied 24 January 2008

Dear all, A conjoint reading of Circular 681 dated 8/3/1994 with 13/2006 dated 13/12/2006 might solve a few of your problems. The basic thing to decide is whether the contract is a one of sale or of works contract. As regards printing, although Circular 715 of 8/8/1995 declares all printing as wc, circular 13 above advocates a more judicious approach. There are also several judicial decisions on the subject which you may refer to.

CA Abhash (Chartered Accountant) (324 Points)
Replied 24 January 2008

but cicular no. 13 talks about work relating to fabrication or manufacturing of article or thing in accordance with the specifications given by the assessee. can job of 'fabrication or manufacturing of article or thing in accordance with the specifications' be understood as printing jobs also?

Anil Kumar Agarwala (CA) (67 Points)
Replied 25 January 2008

Para 1 (last part) and Para 2 of the circular does refer to Supply of Printed Materials. It reads-

"However, in reply to question No. 15 in Circular No. 715, dated 8-8-1995 on the subject of applicability of section 194C, in respect of contract for supply printed material as per prescribed specifications, it has been said that such contracts would also be covered under section 194C. It has been represented that the views expressed in these two circulars, to the extent as pointed out above, are in contradiction to each other.
2. The matter has been examined by the Board and it is considered that exclusive reliance on
Question/Answer No. 15 of Circular No. 715, without taking into account the principles laid down in Circular No. 681 is not justified. Before taking a decision on the applicability of TDS under section 194C on a contract, it would have to be examined whether the contract in question is a contract for work or a contract for sale and TDS shall be applicable only where it is a contract for work."

Thus principles laid down in Circular 681 has to be applied.

Sachin Subhashchandra Shah (Finance Consultant) (23 Points)
Replied 10 June 2013

Is TDS applicable on printed cartons

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S M K (CHARTERED ACCOUNTANT) (80 Points)
Replied 11 June 2013

with effect from oct 1 2009 , WOrk shall also include manufacturing or supplying a product according to the requirement or specification of a customer using material purchased from such customer.

However, if the material for such product is purchased from other than the customer , then NO TDS u/s 194C.

Therefore in my opinion - Printed cartons , if the carton materials are not supplied by the customer . TDS not required..

I want a clarification regarding TDS rate on Advertising Bill.. Is it 1 % or that circular 715 dt Aug 8 was still valid? . which rate to be adopted ?