Tds on xerox
vijay (article assistant) (116 Points)
06 January 2016
Is tds applicable on payment made towards xerox charges
19 Replies
CA Mehul Chudasama
(Chartered Accountant)
(618 Points)
Replied 06 January 2016
bhai kitne ki Xerox karwai
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 06 January 2016
Hello ,
I think it will covered u/s 194C. ...
ish kumar sharma
(Sr. Manager Accounts & Finance)
(301 Points)
Replied 06 January 2016
Mr goel in a pr comment you told that there is no need for deduction of TDS on internet services, but out company is deducting TDS on the internet services received from spectranet u/s 194J and a certificate of lower deduction is also received to them CIT(TDS) and prior to this we were deducting @ 10%. How the point is justifiable . Please explain!
Ankit Taprania
(CA FINAL )
(542 Points)
Replied 06 January 2016
I think taking Xerox is a act is SALE , and consequently NO TDS is required to be deducted.
now please explain me how this payment can be covered in 194C .
as TDS u/s 194C is required to be deducted for carrying out any WORK in pursuance of a contract.
“work” shall include—
(a) advertising;
(b) broadcasting and telecasting including production of programmes for such broadcasting or telecasting;
(c) carriage of goods or passengers by any mode of transport other than by railways;
(d) catering;
(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.
i don't think above case can be covered in any of the above situation.
Please enlight me.
CA Mehul Chudasama
(Chartered Accountant)
(618 Points)
Replied 07 January 2016
If the xerox machine vendor is being paid per copy and the responsibility of running the machine (including spare parts, consumable and paper etc.) is his, then it is a contract u/s 194 C. If you pay him monthly rental and you yourself run the machine then it is a lease agreement u/s 194I. You will pay him for minimum copies per month and deduct TDS @ 1% for individiual/huf or 2% for others u/s 194C. He has got the machine to your premises and is using your electricicty. However, you are paying less than what is being paid outside. Only ensure that repairs and consumables and all risks are his.
Mihir
(Chartered Accountant)
(42 Points)
Replied 07 January 2016
First of all contract is something that has to be implied in the court of law. If there is no written agreement than the same can not be termed as a contract. Contract can be oral but both the parties should have agreed to it. If before doing the same there was no mentioning of tds than on what basis the tds would be deducted. So according to me TDS on xerox is applicable under Sec 194 C only if contract is entered and it is tenable in eye of law
CA Mehul Chudasama
(Chartered Accountant)
(618 Points)
Replied 07 January 2016
Mr. Mihir Sorry To Say If I Have Not Made Any Written Agreement And Making Monthly Secutity Charges Then Hope I Don't Have To Deduct TDS And All Assessee Start Doing This To Avoid TDS...
CA Mehul Chudasama
(Chartered Accountant)
(618 Points)
Replied 07 January 2016
Written Agreement Is for the purpose of security and if you doesn't have Written and still you are making payment to same person for their service and for anywork done it will consider for TDS
Mihir
(Chartered Accountant)
(42 Points)
Replied 07 January 2016
Mr Mehul you are right in that case so i also mentioned that the agreement may be oral
sreenivas
(student)
(46 Points)
Replied 08 January 2016
Making xerox copies is not at all a sale transaction. It depends on the agreement between you and xerox vendor,whether it should be covered under 194c or 194i.
As per my understanding of your query,for an amount of 11500 no TDs as per 194c or 194i.
Bottom line:
Took on rent-deduct TDs if rent payable exceeds 180000 for the year.
Made an agreement for making copies-deduct TDs u/s 194c if contract amount exceeds rs75000 for the year or rs30000 for a single contract.
Tony John
(Chartered Accountant)
(6085 Points)
Replied 08 January 2016
For the purpose of Section 194C, a contractor includes a person who carries out any work in pursuance of a contract with the other party. But it shall not include contracts for sale of goods. Such contract could be oral or written.
The list of items specified in Explanation to Section 194C is not exhaustive. "WORK" shall ALSO INCLUDE those listed items. It is not exhaustive.
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