Riddhi Jain (Chartered Accountant) (120 Points)
14 August 2012Kindly advice with proper justification:
Whether TDS is deductible on payments made to vendor for printing letterheads and Visiting cards. The payment shall exceed Rs. 75,000/-. There is no contract with the vendor.
Please help.
Thanks in advance
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 14 August 2012
in case of no contract, the invoice itself is contract, so TDS applicable u/s 194C(1)
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 14 August 2012
Tds is not applicable on printing letterheads and Visiting cards, if material is not provided by the buyer.
prateek aanchalia
(CA)
(859 Points)
Replied 14 August 2012
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 14 August 2012
@ Prateek, printing of visiting card never fall under the defenation of advertisement. Read carefully sec 194C.
Dear Naveen jain,
In case where a company is advertaisement agency and providing the services as Desgining the concept along with printed material( eg.,, prospectus, letterheads, brouchers etc..,). Only printing jobs is done through sub contractors and material provided by advertaisement agency.
In this case whether TDS will attract while making payement to sub contractors..?
Sandeep
(ASST.MANAGER ACCOUNTS)
(1751 Points)
Replied 14 August 2012
Dear Ridhi
If Material will supplied by the principle officer then TDS will deducte u/s 194C at applicable rate (For C-2% and NC - 1%) and if material and printing both done by supplier then TDS Not applicable.
Rgds
Sandeep Jha
CA Shantanu Goyal
(Practicing CA)
(122 Points)
Replied 15 August 2012
In accordance with sub-clause (e) of clause (iv) of explanation of section 194C which defines work, clearly specifies that:
where the product is being supplied according to specification of customer and the customer itself provides material then it will be work and is required to deduct TDS under section 194C
On the other hand if material is not provided by the customer than it is not work and provisions of section 194C is not applicable
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 15 August 2012
@ all
TDS deduction is liability of payee, whereas the amount paid goes as expenditure in P/L accounts of the payee so TDS provisions are applied,
if the payee is dealing in printed stationary and such items are his purchase items, not claiming expenditure in P/L account then its not liable to TDS.
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 16 August 2012
@ Anand, yes, tds will be atract in your case.
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 16 August 2012
@ U S SHARMA, Provision of tds is not applicable on the basis of that expenditure has been booked in profit and loss account .
Its clear mentioned in sec 194C is materail not provided for printing then tds not applicable.
llllVICTORllll
(Internal Auditor)
(511 Points)
Replied 16 August 2012
What is Definition of advertisement with relation to section 194C??
Durga prasad N
(Finance Officer)
(57 Points)
Replied 16 August 2012
For this matter, I completely agree with Mr. Navin Jain and he is absolutely correct.
Deepak Jha ( India)
(Manager Accounts &Finance)
(38 Points)
Replied 17 May 2018
how ????. kindly explain
Koolz print
(CEO)
(22 Points)
Replied 26 September 2018
Koolzprint is the leading online solution provider for Customized Office Stationery, Mugs, T-shirts and Promotional Items. We expertise in designing and high-quality printing and have clients from almost all over India and abroad as well. Our master concern Sriyug Print Production founded in the year 1994 in New Delhi is a well-known Advertising and Production Agency dedicated to creating and supplying high-quality print products to meet all businesses and personalized needs.
The proprietor of M/s Sriyug Print Production is Ms. SANGEETA, a women entrepreneur and having experience in the same field for more than 27 years.
Koolzprint has more than 200 customizable Ready-to-Use designs/print products at affordable prices for creating awareness and establishing your Brand along with, Personal or Design Items for your Special Ones. The range start covers Visiting Cards, Stationery Items like Letterheads, Envelopes, Notepads, Certificates, Name slips, Invitation Cards, Announcement Cards, Marketing Material like Brochures, Posters, Flyers, Tent Cards, Danglers, Banners, Promotional items like Mugs, T-shirts, Calendars and many more products.
All our customized designs will be made available in your account in an editable format. So you can easily add details, edit them without any technical know-how about any designing software and place orders in a very efficient and easy to use fashion.
We also have our in-house professional team to help you and guide you handle your orders through the process of designing and finalizing your products in a very simple manner and hand it over within the expected delivery timeline.
CAclubindia
