Vinod (CA in Practice) (445 Points)
02 July 2012Dear friends,
My doubt is whether we need to deduct tax from the monthly news letter printing charges paid to a press (by the ICAI chapter) ? It includes the designing work also. Monthly charge is around Rs. 10,000/-.
If applicable, under which section ? (2% under Sec. 194C or 10% under 194J)?
please share your views.
Thanks in advance.
divva
(Industrial Trainee @ Ashok Leyland)
(348 Points)
Replied 02 July 2012
TDS is applicable. if there are seperate invoices/amount mentioned seperately for printing (194C) & designing(194J). Else it is preferable to deduct higher rate of tax (ie) 194J (10%).
You have penalty/Interest for short deduction so higher rate shall be opted.
Pradeep Kumar Das
(M.Com(Fin)and IPCC continue )
(37 Points)
Replied 02 July 2012
My Qu:- If office building Construction and painting related works are providing to Contractor whom working with materials at times of bill raised TDS will calculate 2% or 30% on 1% or only 1% which one calculate .
divva
(Industrial Trainee @ Ashok Leyland)
(348 Points)
Replied 03 July 2012
@ Pradeep: TDS on Building painting & Construction - TDS wil be chargeble U/s 194C (Contractors) 2%, but if the same is Individual/Huf 1% .
If there Material & Service charge are mentioned seperately Tds to be deducted on service amount, else on the entire invoice amount
Maruthi
(Tds Returns Preparer)
(207 Points)
Replied 03 July 2012
But, even though it is whether "contract or Sub-Contract" tds should be made U/S 194C and
1). 1%, if deductee is Individual or HUF
2). 2%, if deductee is other than Individual or HUF
Regards
Ashish
(CA)
(166 Points)
Replied 03 July 2012
TDS on Printing will come under 194C & NOT under 194J. As 194J is specific to Professional Charges given under it.
Printing cannot be termed as professional Charges. It is Job / Labour Work.
Moreever TDS on Printing charges can be deducted only if fall under defination of Work,
(iv) work shall include
(a).......
(b).......
(e) manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer,but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer.
Tax will be deducted only if Material is supplier by deductor.
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