Tds on xerox

Page no : 2

SANAJAY KAPOOR (cwa) (45 Points)
Replied 08 January 2016

You all guys are saying it is a contract therefore deduct tds under section 194c

i m also admitting that it is a contract .

BUT 194c do not attract on any sh*tty contract , it only applies on WORK contract , defined in 194c.

you aguys have better understanding so please .......

pease point out the CLAUSE of WORK defination in which it can be covered .

again

point out the CLAUSE of WORK defination .

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(Guest)

A contract does not have to be written, it can be oral. I agree with Sreenivas. If the amount exceeds the threshold amount TDs had to be deducted.

Tony John (Chartered Accountant) (6085 Points)
Replied 08 January 2016

In my opinion, the Explanation to Section 194C simply gives a list of items which are includible in the purview of WORK. It is to be noted that the Explanation begins with the words "Work shall include ..... ' Hence the Explanation is only illustrative and is not exhaustive. I cannot agree that only the services specified in the Expalanation shall attract TDS u/s 194C.

Eg. If a company enters into a contract with another person to get its machines repaired and maintained, and the amount per month comes to around 50,000 will it not attract TDS u/s 194C ? Repairs and maintenance is not specifically included in the definition of WORK as per Section 194C.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 08 January 2016

Xerox

its incidental and does not have any fixed contract for month or year, and generally have been paid on runing work basis, usually in cash, so there may be more than one receipent in such amounts. as accounting system does not ask for every cash paid xerox bill to get PAN card attached or making payment by banking chanels,

a simple fair accounting management can exclude these petty expenses from TDS