Originally posted by : Devendra |
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But the transaction relates to sale and purchase of stationery. There is no contract as such in the above mentioned case. So there is no liability for the deduction of TDS.
In the above given transaction only VAT will be levied by the seller.
Regards,
Devendra |
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There is No liability for deduction of TDS u/s. 194C for the following reason:
Payments to contractors
194C (3) Where any sum is paid or credited for carrying out any work mentioned in sub-clause (e) of clause (iv) of the Explanation, tax shall be deducted at source—
(i) on the invoice value excluding the value of material, if such value is mentioned separately in the invoice; or
(ii) on the whole of the invoice value, if the value of material is not mentioned separately in the invoice.
Explanation.—For the purposes of this section,—
(iv) “work” shall include—
(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.