Vijay Shankar (Regional Accounts Manager) (80 Points)
01 October 2012This may be an interesting topic. There is an agreement to supply DVD between two companies. Company A & B. A supplies DVD at fixed intervals to B. A's invoice is Tax invoice with local VAT. B deducts Tax saying that the transaction is based on an agreement so sec 194c will be applicable.
Please share your views
Aman Aggarwal
(Audit & Finance Manager)
(62 Points)
Replied 05 October 2012
194C is applicable to agreements in the nature of work contracts involving jobwork / supply of manpower etc.
As per the given facts of case, the agreement is solely in the nature of SALES, so it does not partake the nature of works contract as governed by 194C. Hence no TDS required to be deducted u/s 194c
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
